Summary: First Conference Report

ALL GENERAL GOVERNMENT

FY 2007-08 SB 229

Analysts: Al Valenzio, Mark Wolf, and Kim O'Berry

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY 2006-07 YTD*
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$2,993,657,000	$3,172,936,600	$3,061,156,300	$3,170,398,600	$3,123,867,900	*$130,210,900*	4.3
IDG/IDT	588,846,200	631,919,000	619,593,900	622,411,800	646,767,400	57,921,200	9.8
Federal	103,227,200	108,144,700	110,410,100	109,242,700	108,396,800	5,169,600	5.0
Local	2,766,200	2,800,700	2,800,700	2,800,700	2,800,700	34,500	1.2
Private	1,250,100	1,262,900	1,262,900	1,262,900	1,262,900	12,800	1.0
Restricted	1,658,253,000	1,747,799,800	1,678,870,200	1,747,396,800	1,703,781,000	45,528,000	2.7
GF/GP	$639,314,300	$681,009,500	$648,218,500	$687,283,700	$660,859,100	$21,544,800	3.4
FTEs	7,290.4	7,280.9	7,280.9	7,300.3	7,327.9	37.5	0.5

The totals above include theMichigan Strategic Fund budget which was not included in the FY 2007 General Government Act and which is not included in the Senate version of the General Government bill.

Departments and agencies included under this budget bill are the Executive Office, the Legislature, and the departments of Attorney General, Civil Rights, Information Technology, Management and Budget (including Civil Service), State, and Treasury (including Lottery, the Gaming Control Board, and the Michigan Strategic Fund). The Department of Treasury budget also includes revenue sharing payments to local units of government, and general obligation debt service.

ATTORNEY GENERAL

Summary: First Conference Report

FY 2007-08 SB 229

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY 2006-07 YTD*
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$65,146,800	$73,630,800	$68,910,800	$73,630,800	$73,124,200	*$7,977,400*	12.2
IDG/IDT	13,539,300	21,780,300	14,364,500	21,780,300	21,780,300	8,241,000	60.9
Federal	9,960,700	7,816,000	10,179,300	7,816,000	7,816,000	(2,144,700)	(21.5)
Local	0	0	0	0	0	0	0
Private	0	0	0	0	0	0	0
Restricted	11,175,800	11,169,000	12,173,500	11,169,000	11,491,300	315,500	2.8
GF/GP	$30,471,000	$32,865,500	$32,193,500	$32,865,500	32,036,600	$1,565,600	5.1
FTEs	565.0	562.0	562.0	562.0	562.0	(3.0)	(0.5)

Overview

The Attorney General serves as legal counsel for state departments, agencies, boards, commissions, and their officers; brings actions and intervenes in cases on the state’s behalf; and represents legislators and judges who may be sued while acting in their official capacities. The Attorney General issues opinions on questions of law submitted by members of the Legislature and others; serves as chief law enforcement officer of the state; and has supervisory powers over all local prosecuting attorneys. The Department’s mission is to protect the common legal rights of citizens; defend the Constitution and the laws of the state; and represent the legal interests of government. The Department’s goals are to make the state a safe place for its citizens; offer justice to the victims of crime; defend common natural resources and monetary assets of the state; and deliver excellent legal services at a minimum cost to taxpayers.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
*1. Fund Source Adjustments* Adjusts IDG, federal, and state restricted fund sources in order to more accurately reflect how legal services provided by the Department of Attorney General are paid for.	Gross IDG Federal Restricted GF/GP	$4,052,900 7,098,400 (2,443,400) (602,100) $0	$0 0 0 0 $0	$4,052,900 7,098,400 (2,443,400) (602,100) $0	$4,052,900 7,098,400 (2,443,400) (602,100) $0
*2. Administrative Reductions* The Executive, Senate, and House reduce AG Operations ($1.3 million) and information technology ($3,100). The Conference Committee reduces further AG Operations ($770,900); Child Support Enforcement ($24,800), and PACC ($33,200).	Gross GF/GP	($1,303,100) ($1,303,100)	($1,303,100) ($1,303,100)	($1,303,100) ($1,303,100)	($2,132,000) ($2,132,000)
*3. Eliminate Byrne Grant Funding (PACC)* Reflects elimination of Byrne grant funding that has been made available to the department from the federal government.	FTEs Gross Federal GF/GP	(3.0) ($225,000) (225,000) $0	(3.0) ($225,000) (225,000) $0	(3.0) ($225,000) (225,000) $0	(3.0) ($225,000) (225,000) $0
*4. Eliminate Funding for Early Retirement Sick Leave Payouts* Eliminates $71,300 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of the payments.	Gross GF/GP	($71,300) ($71,300)	($71,300) ($71,300)	($71,300) ($71,300)	($71,300) ($71,300)
*5. Real Estate Fraud Investigations* Includes additional funding for real estate fraud investigations.	Gross Restricted	$0 $0	$322,300 $322,300	$0 $0	$322,300 $322,300
*6. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges. The Senate includes addition funding for economic adjustments, but to a lesser extent due to not included the fund source adjustments.	Gross IDG Federal Restricted GF/GP	$2,645,000 767,600 247,900 285,600 $1,343,900	$2,327,600 450,200 167,800 365,700 $1,343,900	$2,645,000 767,600 247,900 285,600 $1,343,900	$2,645,000 767,600 247,900 285,600 $1,343,900
*7. Budgetary Savings* The Senate includes General Fund reductions to be taken at the department's discretion, subject to the legislative transfer process.	Gross GF/GP	$0 $0	($672,000) ($672,000	$0 $0	$0 $0

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

Conference

Change

1. Fund Source Adjustments

Adjusts IDG, federal, and state restricted fund sources in order to more accurately reflect how legal services provided by the Department of Attorney General are paid for.

Gross

IDG

Federal

Restricted

GF/GP

$4,052,900

7,098,400

(2,443,400)

(602,100)

$4,052,900

7,098,400

(2,443,400)

(602,100)

$4,052,900

7,098,400

(2,443,400)

(602,100)

2. Administrative Reductions

The Executive, Senate, and House reduce AG Operations ($1.3 million) and information technology ($3,100). The Conference Committee reduces further AG Operations ($770,900); Child Support Enforcement ($24,800), and PACC ($33,200).

Gross

GF/GP

($1,303,100)

($1,303,100)

($1,303,100)

($1,303,100)

($1,303,100)

($1,303,100)

($2,132,000)

($2,132,000)

3. Eliminate Byrne Grant Funding (PACC)

Reflects elimination of Byrne grant funding that has been made available to the department from the federal government.

FTEs

Gross

Federal

GF/GP

(3.0)

($225,000)

(225,000)

(3.0)

($225,000)

(225,000)

(3.0)

($225,000)

(225,000)

(3.0)

($225,000)

(225,000)

4. Eliminate Funding for Early Retirement Sick Leave Payouts

Eliminates $71,300 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of the payments.

Gross

GF/GP

($71,300)

($71,300)

($71,300)

($71,300)

($71,300)

($71,300)

($71,300)

($71,300)

5. Real Estate Fraud Investigations

Includes additional funding for real estate fraud investigations.

Gross

Restricted

$322,300

$322,300

$322,300

$322,300

6. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges. The Senate includes addition funding for economic adjustments, but to a lesser extent due to not included the fund source adjustments.

Gross

IDG

Federal

Restricted

GF/GP

$2,645,000

767,600

247,900

285,600

$1,343,900

$2,327,600

450,200

167,800

365,700

$1,343,900

$2,645,000

767,600

247,900

285,600

$1,343,900

$2,645,000

767,600

247,900

285,600

$1,343,900

7. Budgetary Savings

The Senate includes General Fund reductions to be taken at the department's discretion, subject to the legislative transfer process.

Gross

GF/GP

($672,000)

($672,000

Major Boilerplate Changes From FY 2006-07

Sec. 301. Contingency Funding – NEW

Includes new language that appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. The Executive and House included this language, the Senate did not.

Sec. 307. Antitrust Revenue – NEW

Restores language previously vetoed by the Governor in the FY 2007 Act that appropriates up to $250,000 of the revenue received by the department for antitrust, securities fraud, consumer protection, class action enforcement, or attorneys fees recovered by the department to litigate such cases. The Senate included this section; the Executive and House did not.

Sec. 310. Proceeds Received by the Attorney General – NOT INCLUDED

The Conference Committee does not include language that requires all money or other proceeds received by the Department of Attorney General for debts due or penalties forfeited to the people of this state, or deriving from settlement of any lawsuit against a private individual or business or any other private organization, to be deposited to the state Treasury into a restricted fund to be used as provided by law; requires a quarterly report on case names, case file numbers, court docket numbers, and presiding courts for every matter the Department of Attorney General settles in the preceding fiscal quarter. The Executive and House included this section; the Senate did not.

Sec. 310. Child Support Enforcement Funding – RETAINED

The Conference Committee includes language which requires the Department of Human Services to maintain a cooperative agreement with the Department of Attorney General for federal Title IV-D funding to be used to support child support enforcement activities and authorizes access for the Attorney General to information used to locate parents who fail to pay court ordered support. The Senate included this section, the Executive and House did not.

Sec. 310a. Prohibit the Attorney General’s Image or Likeness on Advertising – NOT INCLUDED

The Conference Committee does not include a section prohibiting the department from using the proceeds of a settlement on advertising and public service messages using a reference to, or the image or voice of, the attorney general. The House included this section; the Executive and Senate do not.

Sec. 311. Prohibitions on Expenditure of Funding – NEW

The Conference Committee includes language that prohibits the Department of Attorney General from receiving and expending funds, in addition to those appropriated, for legal services provided to other state departments except for expert witnesses, court costs, or other non-salary litigation expenses associated with pending legal actions. The Executive and House included this section; the Senate did not.

Sec. 311. Medicaid Fraud Awards – NOT INCLUDED

The Conference Committee did not include a section allowing funds received by the department for violations of the Medicaid False Claim Act to be appropriated to the department. The Senate included this section; the Executive and House do not.

CIVIL RIGHTS

Summary: First Conference Report

FY 2007-08 SB 229

Analyst: Kim O'Berry

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY 2006-07 YTD*
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$13,852,300	$14,490,700	$13,759,400	$14,942,000	$14,491,300	*$639,000*	*4.6*
IDG/IDT	221,000	0	0	0	0	(221,000)	(100.0)
Federal	1,533,200	2,054,100	2,054,100	2,054,100	2,054,100	520,900	34.0
Local	0	0	0	0	0	0	0.0
Private	0	0	0	0	0	0	0.0
Restricted	55,000	0	0	0	0	(55,000)	(100.0)
GF/GP	$12,043,100	$12,436,600	$11,705,300	$12,887,900	$12,437,200	$394,100	3.3

FTEs		141.0	141.0	141.0	141.0	0.0	0.0

Overview

The Michigan Civil Rights Commission is charged with investigating alleged discrimination against any person because of religion, race, color, or national origin and is directed to “secure the equal protection of such civil rights without such discrimination.” The Michigan Department of Civil Rights serves as the administrative arm charged with implementing policies of the Commission. The Department provides educational programs that promote voluntary compliance with civil rights laws, investigates and resolves discrimination complaints, disseminates information that explains the rights and responsibilities of Michigan citizens as provided by law, and provides information and services to businesses on diversity initiatives, equal employment law, procurement opportunities, feasibility studies, and joint venture/strategic alliance matchmaking.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
*1. Increased Federal Funding* Includes authorization for the Department to receive additional federal grant funding made available from the United States Department of Housing and Urban Development ($200,000) and the Equal Employment Opportunity Commission ($200,000). As a result of the additional federal grant funding, GF/GP is reduced by a like amount.	Gross Federal GF/GP	$0 400,000 ($400,000)	$0 400,000 ($400,000)	$400,000 400,000 $0	$0 400,000 ($400,000)
*2. Administrative Reductions* Reduces amount of funding available for administrative expenses by $51,300. Savings are anticipated to be generated through administrative efficiencies.	Gross GF/GP	($51,300) ($51,300)	($51,300) ($51,300)	$0 $0	($51,300) ($51,300)
*3. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.	Gross Federal GF/GP	$605,500 87,900 $517,600	$605,500 87,900 $517,600	$605,500 87,900 $517,600	$605,500 87,900 $517,600
*4. GF/GP Reduction* Reflects reductions to the Civil Rights Operation ($442,000) and Information Technology Services and Projects ($30,500) line items.	Gross GF/GP	$0 $0	($472,500) ($472,500)	$0 $0	$0 $0
*5. Budgetary Savings* Reflects a new appropriation unit for budgetary savings to be taken at the discretion of the department as recommended by the Senate.	Gross GF/GP	$0 $0	($258,800) ($258,000)	$0 $0	$0 $0
*6. Additional GF/GP Adjustments* Includes partial restoration of the Governor's original reductions to Unclassified Positions ($600) line item to meet target.	Gross GF/GP	$0 $0	$0 $0	$0 $0	$600 $600

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

Conference

Change

1. Increased Federal Funding

Includes authorization for the Department to receive additional federal grant funding made available from the United States Department of Housing and Urban Development ($200,000) and the Equal Employment Opportunity Commission ($200,000). As a result of the additional federal grant funding, GF/GP is reduced by a like amount.

Gross

Federal

GF/GP

400,000

($400,000)

400,000

($400,000)

$400,000

400,000

($400,000)

2. Administrative Reductions

Reduces amount of funding available for administrative expenses by $51,300. Savings are anticipated to be generated through administrative efficiencies.

Gross

GF/GP

($51,300)

($51,300)

($51,300)

($51,300)

($51,300)

($51,300)

3. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.

Gross

Federal

GF/GP

$605,500

87,900

$517,600

$605,500

87,900

$517,600

$605,500

87,900

$517,600

$605,500

87,900

$517,600

4. GF/GP Reduction

Reflects reductions to the Civil Rights Operation ($442,000) and Information Technology Services and Projects ($30,500) line items.

Gross

GF/GP

($472,500)

($472,500)

5. Budgetary Savings

Reflects a new appropriation unit for budgetary savings to be taken at the discretion of the department as recommended by the Senate.

Gross

GF/GP

($258,800)

($258,000)

6. Additional GF/GP Adjustments

Includes partial restoration of the Governor's original reductions to Unclassified Positions ($600) line item to meet target.

Gross

GF/GP

$600

$600

Major Boilerplate Changes From FY 2006-07
*Sec. 401. Contingency Funding* – NEW Executive, House, and Conference Committee include language which appropriates $2.0 million for federal contingency funding that can be expended only upon legislative transfer to a specific line item. The Senate does not include this language.

Major Boilerplate Changes From FY 2006-07

Sec. 401. Contingency Funding – NEW

Executive, House, and Conference Committee include language which appropriates $2.0 million for federal contingency funding that can be expended only upon legislative transfer to a specific line item. The Senate does not include this language.

EXECUTIVE OFFICE

Summary: First Conference Report

FY 2007-08 SB 229

Analyst: Al Valenzio

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY 2006-07 YTD*
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$5,315,900	$5,509,900	$5,305,600	$5,575,300	$5,317,300	*$1,400*	-
IDG/IDT	0	0	0	0	0	0	0
Federal	0	0	0	0	0	0	0
Local	0	0	0	0	0	0	0
Private	0	0	0	0	0	0	0
Restricted	0	0	0	0	0	0	0
GF/GP	$5,315,900	$5,509,900	$5,305,600	$5,575,300	$5,317,300	$1,400	-
FTEs	84.2	84.2	84.2	84.2	84.2	0.0	-

Overview

The Executive Office budget provides funding for the Governor, the Lieutenant Governor, and their staffs. Major constitutionally-specified responsibilities include organization and supervision of the Executive branch and annual preparation and submission of the Executive budget. Divisions within the Governor’s Office include: Legal, Operations, Community-Based Initiatives, Appointments, Constituent Services, Policy, Communications, Legislative Affairs, Scheduling, Special Projects, and the Governor’s Washington D.C., Southeastern Michigan, and Upper Peninsula Offices.

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate Change

House Change

Conference Change

1. Restore One-Time FY 2007 Reductions

Replace funds eliminated for retirement contribution savings and other program cuts.

Gross

GF/GP

$194,000

$194,000

$194,000

$194,000

$1,400

$1,400

2. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges.

Gross

GF/GP

$65,400

$65,400

3. Budgetary Savings

The Senate includes an unspecified budgetary savings reduction. The Executive and House do not make this recommendation.

Gross

GF/GP

($204,300)

($204,300)

Major Boilerplate Changes From FY 2006-07

There is no boilerplate for the Executive office.

INFORMATION TECHNOLOGY

Summary: First Conference Report

FY 2007-08 SB 229

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY 2006-07 YTD*
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$374,846,400	$409,955,600	$409,110,400	$402,759,900	$428,868,100	*$54,021,700*
IDG/IDT	374,846,400	409,955,600	409,110,400	402,759,900	428,868,100	54,021,700
Federal	0	0	0	0	0
Local	0	0	0	0	0
Private	0	0	0	0	0
Restricted	0	0	0	0	0
GF/GP	$0	$0	0	$0	$0
FTEs	1,782.4	1,780.4	1,780.4	1,780.4	1,780.4

Overview

The Department of Information Technology (DIT) acts as a general contractor between the state’s information technology users and private sector providers of information technology (IT) products and services. The Department’s services include application development and maintenance; desktop, mainframe, server, and local area network computer support and management; contract, project, and procurement planning; telecommunication services; security; and software and software licensing. The Department utilizes existing technology funding and state employees from within the other 19 executive branch departments and agencies. Each state department and agency requests spending authority to fund IT-related activities and pays for technology services rendered by DIT through an interdepartmental grant. Administration of fund sources remains with each state department/agency.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
*1. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges.	Gross IDG GF/GP	$6,342,100 6,342,100 $0	$6,342,100 6,342,100 $0	$6,342,100 6,342,100 $0	$6,342,100 6,342,100 $0
*2. Program Enhancements* Makes the following adjustments to reflect appropriations for program enhancements made in other state department budgets: $712,000 and 1.0 FTE position to the Department of Management and Budget for security and disaster recovery efforts, to implement electronic deposit of retirement payments from public schools, and to expand customer contact and quality management software; $560,300 to the Department of Human Services for Children's Welfare system improvements and the Daycare Case Review project; $500,000 to the Department of Environmental Quality for the Information Lifecycle Management System; $400,000 to the Department of Transportation for replacement of the PowerBuilder development program; and $176,000 to the Department of Education for additional security controls as a result of audit findings.	FTEs Gross IDG GF/GP	1.0 $2,348,300 2,348,300 $0	1.0 $2,348,300 2,348,300 $0	1.0 $2,348,300 2,348,300 $0	1.0 $2,348,300 2,348,300 $0
*3. Base Adjustments and Administrative Reductions* Makes the following adjustments to more accurately reflect what has been appropriated for information technology services and projects in other state department budgets: · Adds $17.0 million to the Department of Human Services to reflect transfer of the Juvenile Justice Information System, reflect transfer of 2.0 system security FTE positions, reflect fund source shift from federal funds to GF/GP for elimination of child support incentives, for on-going development of the Integrated Service Delivery Project, and to properly align federal authorization for Child Support Automation. · Adds $7.0 million to the Department of State Police to assist with the projected shortfall in the IT line item, reflect increase in local subscriber fees for the Michigan Public Safety Communication System, and reflect transfer of IT costs currently being paid outside of the IDG. · Adds $1.3 million to the Department of Community Health to reflect the transfer of building lease costs and contractual savings to the IT line item, restore unrealized savings for price reductions, and reflect additional federal grant funding for the WIC pilot program. · Adds $1.2 million to the Department of Corrections for desktop maintenance and one-time computer costs, upgrading telecommunications infrastructure, and upgrading current stand-alone timekeeping system. · Adds $500,000 to the Department of State to reflect transfer of equipment and maintenance for the Uniform Commercial Code program to the IT line item. · Adds $140,000 to the Department of History, Arts, and Libraries to cover web portal expenses. · Removes $1.0 million from the Department of Labor and Economic Growth to reflect a portion of the savings taken as a part of their administrative reduction plan. · Removes $580,000 in one-time funding from the Department of Management and Budget for system changes to the retirement systems and $150,000 to reflect savings that are expected to be achieved in MAIN through vacancy management and administrative efficiencies. · Removes $50,000 from the Department of Transportation to properly reflect anticipated revenues.	FTEs Gross IDG GF/GP	(3.0) $24,805,400 24,805,400 $0	(3.0) $24,809,900 24,809,900 $0	(3.0) $24,805,400 24,805,400 $0	(3.0) $24,805,400 24,805,400 $0
· Removes $443,700 from the Department of Information Technology to reflect their portion of savings taken as part of the 5% administrative reduction plan. · Removes $500,000 in one-time funding from the Department of Corrections for migration to the OMNI system and $300,000 in one-time funding for OMNI server replacement. · Removes $145,000 from the Department of Treasury to reflect transfer of 1.0 FTE position out of the Department of Information Technology to the Tax Processing unit in Treasury and reduction of available funding from the Land Reutilization Fund. Reduces the funding for the Department of Natural Resources by $4,500 to reflect the loss of funding from the Michigan Civilian Conservation Corps Endowment Fund, which was transferred to the General Fund. This reduction was included as part of the Executive Revision dated 6/25/2007. The Senate does not include this reduction, the House Committee does.
*4. Committee Adjustments* The Senate included additional IT reductions for Civil Rights ($30,500), Civil Service ($9,500), DMB (597,100), and Treasury ($212,000). The House Committee does not include the Executive's administrative reductions for the General Government agencies of Civil Rights ($1,300), Lottery ($51,700), DMB ($165,000), Civil Service ($12,500), MCGB ($2,300), and Treasury ($40,200). (The House change column does not include $88,800 for State Fair IT, included in the DMB budget.) The House Committee also includes reductions for History, Arts, and Libraries ($7,400); and Human Services ($7,373,200). The Conference Committee includes reductions for Agriculture ($40,000), Civil Service ($14,900), Corrections ($6,700), Education ($103,300), Management and Budget ($313,900), Natural Resources ($300,000), State Police ($609,700). The Conference Committee includes increases for Community Health ($18.8 million) largely related to funding for the Michigan Medicaid Information Systems, which the Executive only included $100 placeholder, and the Department of Treasury ($1.5 million) related to secondary collections for delinquent taxes and other state agency debt.	Gross IDG GF/GP	$0 0 $0	($849,700) (849,700) $0	($7,195,700) (7,195,700) $0	$18,951,800 18,951,800 $0
*5. Eliminate Early Retirement Sick Leave Payouts* Eliminates $281,200 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of payments.	Gross IDG GF/GP	($281,200) (281,200) $0	($281,200) (281,200) $0	($281,200) (281,200) $0	($281,200) (281,200) $0
*6. Human Resources Optimization Project* Reduces funding by $1.5 million in order to more accurately reflect the Department's portion of Human Resources Optimization user charges paid to the Department of Civil Service.	Gross IDG GF/GP	($1,481,000) (1,481,000) $0	($1,481,000) (1,481,000) $0	($1,481,000) (1,481,000) $0	($1,481,000) (1,481,000) $0

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

Conference

Change

1. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges.

Gross

IDG

GF/GP

$6,342,100

6,342,100

$6,342,100

6,342,100

$6,342,100

6,342,100

$6,342,100

6,342,100

2. Program Enhancements

Makes the following adjustments to reflect appropriations for program enhancements made in other state department budgets: $712,000 and 1.0 FTE position to the Department of Management and Budget for security and disaster recovery efforts, to implement electronic deposit of retirement payments from public schools, and to expand customer contact and quality management software; $560,300 to the Department of Human Services for Children's Welfare system improvements and the Daycare Case Review project; $500,000 to the Department of Environmental Quality for the Information Lifecycle Management System; $400,000 to the Department of Transportation for replacement of the PowerBuilder development program; and $176,000 to the Department of Education for additional security controls as a result of audit findings.

FTEs

Gross

IDG

GF/GP

1.0

$2,348,300

2,348,300

1.0

$2,348,300

2,348,300

1.0

$2,348,300

2,348,300

1.0

$2,348,300

2,348,300

3. Base Adjustments and Administrative Reductions

Makes the following adjustments to more accurately reflect what has been appropriated for information technology services and projects in other state department budgets:

· Adds $17.0 million to the Department of Human Services to reflect transfer of the Juvenile Justice Information System, reflect transfer of 2.0 system security FTE positions, reflect fund source shift from federal funds to GF/GP for elimination of child support incentives, for on-going development of the Integrated Service Delivery Project, and to properly align federal authorization for Child Support Automation.

· Adds $7.0 million to the Department of State Police to assist with the projected shortfall in the IT line item, reflect increase in local subscriber fees for the Michigan Public Safety Communication System, and reflect transfer of IT costs currently being paid outside of the IDG.

· Adds $1.3 million to the Department of Community Health to reflect the transfer of building lease costs and contractual savings to the IT line item, restore unrealized savings for price reductions, and reflect additional federal grant funding for the WIC pilot program.

· Adds $1.2 million to the Department of Corrections for desktop maintenance and one-time computer costs, upgrading telecommunications infrastructure, and upgrading current stand-alone timekeeping system.

· Adds $500,000 to the Department of State to reflect transfer of equipment and maintenance for the Uniform Commercial Code program to the IT line item.

· Adds $140,000 to the Department of History, Arts, and Libraries to cover web portal expenses.

· Removes $1.0 million from the Department of Labor and Economic Growth to reflect a portion of the savings taken as a part of their administrative reduction plan.

· Removes $580,000 in one-time funding from the Department of Management and Budget for system changes to the retirement systems and $150,000 to reflect savings that are expected to be achieved in MAIN through vacancy management and administrative efficiencies.

· Removes $50,000 from the Department of Transportation to properly reflect anticipated revenues.

FTEs

Gross

IDG

GF/GP

(3.0)

$24,805,400

24,805,400

(3.0)

$24,809,900

24,809,900

(3.0)

$24,805,400

24,805,400

(3.0)

$24,805,400

24,805,400

· Removes $443,700 from the Department of Information Technology to reflect their portion of savings taken as part of the 5% administrative reduction plan.

· Removes $500,000 in one-time funding from the Department of Corrections for migration to the OMNI system and $300,000 in one-time funding for OMNI server replacement.

· Removes $145,000 from the Department of Treasury to reflect transfer of 1.0 FTE position out of the Department of Information Technology to the Tax Processing unit in Treasury and reduction of available funding from the Land Reutilization Fund.

Reduces the funding for the Department of Natural Resources by $4,500 to reflect the loss of funding from the Michigan Civilian Conservation Corps Endowment Fund, which was transferred to the General Fund. This reduction was included as part of the Executive Revision dated 6/25/2007. The Senate does not include this reduction, the House Committee does.

4. Committee Adjustments

The Senate included additional IT reductions for Civil Rights ($30,500), Civil Service ($9,500), DMB (597,100), and Treasury ($212,000).

The House Committee does not include the Executive's administrative reductions for the General Government agencies of Civil Rights ($1,300), Lottery ($51,700), DMB ($165,000), Civil Service ($12,500), MCGB ($2,300), and Treasury ($40,200). (The House change column does not include $88,800 for State Fair IT, included in the DMB budget.)

The House Committee also includes reductions for History, Arts, and Libraries ($7,400); and Human Services ($7,373,200).

The Conference Committee includes reductions for Agriculture ($40,000), Civil Service ($14,900), Corrections ($6,700), Education ($103,300), Management and Budget ($313,900), Natural Resources ($300,000), State Police ($609,700).

The Conference Committee includes increases for Community Health ($18.8 million) largely related to funding for the Michigan Medicaid Information Systems, which the Executive only included $100 placeholder, and the Department of Treasury ($1.5 million) related to secondary collections for delinquent taxes and other state agency debt.

Gross

IDG

GF/GP

($849,700)

(849,700)

($7,195,700)

(7,195,700)

$18,951,800

18,951,800

5. Eliminate Early Retirement Sick Leave Payouts

Eliminates $281,200 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of payments.

Gross

IDG

GF/GP

($281,200)

(281,200)

($281,200)

(281,200)

($281,200)

(281,200)

($281,200)

(281,200)

6. Human Resources Optimization Project

Reduces funding by $1.5 million in order to more accurately reflect the Department's portion of Human Resources Optimization user charges paid to the Department of Civil Service.

Gross

IDG

GF/GP

($1,481,000)

(1,481,000)

($1,481,000)

(1,481,000)

($1,481,000)

(1,481,000)

($1,481,000)

(1,481,000)

Major Boilerplate Changes From FY 2006-07
*Sec. 573.* *Sale* *of Paid Advertising –* REVISED Includes language placing a $250,000 limit on Department collections for the sale of paid advertising and add carryforward authorization for revenues collected. The House and Senate included this language; the Executive deleted $250,000 limit. Includes language permitting the Department to accept gifts, bequests, donations, grants, and other contributions to support the cost of the state website or services. The Executive and House included this language; the Senate did not. The Conference Committee does not include added language authorizing the carryforward of funds received under this section. The Executive included this language; the House and Senate did not.
*Sec. 574. Report on Expenditures Made for Provision of Services –* RETAINED Retains language requiring a report on expenditures made for providing information and technical services, publications, maps, and other products. The House and Senate included this language; the Executive did not include the reporting requirement.
*Sec. 578. Report on Amounts Appropriated by Fund Source –* RETAINED Retains language that requires a report on the amounts appropriated by fund source for each department and a listing of expenditures made from those appropriations. The House and Senate included this language; the Executive did not.
*Sec. 579. Report on Life-Cycle of IT Hardware and Software –* RETAINED Retains language that requires a report on the life-cycle of information technology-related hardware and software. The House included this language; the Executive and Senate did not.
*Sec. 581. Report on Technology Assets of the State –* REVISED Retains language requiring the Department to assess the state's information technology assets, but removes a reporting requiring. The Executive and House included this section; the Senate did not.
*Sec. 584. Report on Information and Referral Services –* REVISED Includes language requiring the Department to report on all information and referral services that exist for all state departments that would result from 211 service. The Senate retained this section, expanding the study to include all departments; the Executive and House deleted this section.
*Sec. 585. Report on Child Support Enforcement System –* RETAINED Retains a requirement for a report on amount expended for Child Support Enforcement System, revisions made to spending plans, and amount of penalties paid to federal government. The House and Senate included this section; the Executive did not.
*Sec. 586. Adjustment of Appropriation Line Items –* NEW Includes language authorizing adjustment of appropriation line items in the DIT budget when corresponding adjustments are made in the other state department budgets. The Executive, House, and Senate included this section.
*Sec. 587. Procurement Study and Budgetary Savings –* NOT INCLUDED The Conference Committee does not include language requiring the department to study ways to streamline its procurement procedures, requires budgetary reductions if the study and required report are not completed by November 30, 2007. The House included this section; the Executive and Senate did not.

Major Boilerplate Changes From FY 2006-07

Sec. 573. Sale of Paid Advertising – REVISED

Includes language placing a $250,000 limit on Department collections for the sale of paid advertising and add carryforward authorization for revenues collected. The House and Senate included this language; the Executive deleted $250,000 limit.

Includes language permitting the Department to accept gifts, bequests, donations, grants, and other contributions to support the cost of the state website or services. The Executive and House included this language; the Senate did not.

The Conference Committee does not include added language authorizing the carryforward of funds received under this section. The Executive included this language; the House and Senate did not.

Sec. 574. Report on Expenditures Made for Provision of Services – RETAINED

Retains language requiring a report on expenditures made for providing information and technical services, publications, maps, and other products. The House and Senate included this language; the Executive did not include the reporting requirement.

Sec. 578. Report on Amounts Appropriated by Fund Source – RETAINED

Retains language that requires a report on the amounts appropriated by fund source for each department and a listing of expenditures made from those appropriations. The House and Senate included this language; the Executive did not.

Sec. 579. Report on Life-Cycle of IT Hardware and Software – RETAINED

Retains language that requires a report on the life-cycle of information technology-related hardware and software. The House included this language; the Executive and Senate did not.

Sec. 581. Report on Technology Assets of the State – REVISED

Retains language requiring the Department to assess the state's information technology assets, but removes a reporting requiring. The Executive and House included this section; the Senate did not.

Sec. 584. Report on Information and Referral Services – REVISED

Includes language requiring the Department to report on all information and referral services that exist for all state departments that would result from 211 service. The Senate retained this section, expanding the study to include all departments; the Executive and House deleted this section.

Sec. 585. Report on Child Support Enforcement System – RETAINED

Retains a requirement for a report on amount expended for Child Support Enforcement System, revisions made to spending plans, and amount of penalties paid to federal government. The House and Senate included this section; the Executive did not.

Sec. 586. Adjustment of Appropriation Line Items – NEW

Includes language authorizing adjustment of appropriation line items in the DIT budget when corresponding adjustments are made in the other state department budgets. The Executive, House, and Senate included this section.

Sec. 587. Procurement Study and Budgetary Savings – NOT INCLUDED

The Conference Committee does not include language requiring the department to study ways to streamline its procurement procedures, requires budgetary reductions if the study and required report are not completed by November 30, 2007. The House included this section; the Executive and Senate did not.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
*1. Restore One-Time FY 2007 Reductions* Replace funds eliminated for retirement contribution savings and other program cuts.	Gross GF/GP	$5,293,900 $5,293,900	$0 $0	$5,293,900 $5,293,900	$3,221,500 $3,221,500
*2. Legislative Corrections Ombudsman* House recommendation provides funding from an IDG from the Department of Corrections.	Gross IDG GF/GP	$0 0 $0	$0 0 $0	$1,250,000 1,250,000 $0	$0 0 $0
*3. Sentencing Guidelines Commission* House recommendation provides funding from an IDG from the Department of Corrections.	Gross IDG GF/GP	$0 0 $0	$0 0 $0	$500,000 500,000 $0	$0 0 $0
*4. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and Anderson Building rent.	Gross GF/GP	$0 $0	$0 $0	$1,657,900 $1,657,900	$0 $0
*5. Budgetary Savings* The Senate includes an unspecified budgetary savings reduction. The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($4,000,000) ($4,000,000)	$0 $0	$0 $0

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
*1. Restore One-Time FY 2007 Reductions* Replace funds eliminated for retirement contribution savings and other program cuts.	Gross GF/GP	$1,240,400 $1,240,400	$0 $0	$1,240,400 $1,240,400	$720,900 $720,900
*2. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building rent.	Gross GF/GP	$0 $0	$452,000 $452,000	$452,200 $452,200	$0 $0
*3. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($162,600) ($162,600)	$0 $0	$0 $0

MANAGEMENT AND BUDGET

Summary: First Conference Report

FY 2007-08 SB 229

Analyst: Kim O'Berry

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY 2006-07 YTD*
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$507,587,100	$511,806,400	$509,257,300	$513,963,200	$504,898,400	*($2,688,700)*	*(0.5)*
IDG/IDT	160,038,400	162,686,100	162,686,100	162,687,700	162,686,100	2,647,700	1.7
Federal	3,163,400	4,779,100	4,779,100	5,623,600	4,779,100	1,615,700	51.1
Local	1,700,000	1,700,000	1,700,000	1,700,000	1,700,000	0	0.0
Private	150,000	150,000	150,000	150,000	150,000	0	0.0
Restricted	69,931,800	67,824,000	67,824,000	67,847,000	68,104,000	(1,827,800)	(2.6)
GF/GP	$272,603,500	$274,667,200	$272,118,100	$275,954,900	$267,479,200	($5,124,300)	(1.9)

FTEs	999.5	995.0	995.0	1,009.4	995.0	(4.5)	(0.5)

All numbers have been adjusted to reflect the transfer of the Department of Civil Service to the Department of Management and Budget as a result of Executive Order 2007-30.

Overview

The Department of Management and Budget (DMB) is the interdepartmental service and management agency responsible for ensuring proper financial record keeping for state agencies; managing capital outlay projects, state property, state purchasing programs, and the state’s retirement systems; supervising the state motor vehicle fleet, and providing office support services to state agencies. The Office of the State Budget, housed within DMB, prepares, presents, and executes the state budget on behalf of the Governor. Civil Service, an autonomous unit housed within DMB, implements policies established by the Civil Service Commission; administers a statewide merit system that provides classified job opportunities within state government, including administering competitive examinations for classified positions, setting pay scales, administering employee benefits, and administering Civil Service Commission's Employment Relations Policy; and maintains ongoing statewide recruitment. The Department has several autonomous units, including Office of the State Employer, Office of the Children’s Ombudsman, Office of Regulatory Reform, Michigan State Fair, and State Building Authority.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
DEPARTMENT OF MANAGEMENT AND BUDGET *1. Office of Retirement Services – IT Adjustments* Includes additional funding for the following program enhancements: $300,000 to provide the system the ability to add a new spouse for an existing retiree as a pension beneficiary; $150,000 to hire a full-time security officer for retirement-related information technology systems; $150,000 to implement the electronic deposit of retirement payments to the state from public schools; and $412,000 for software to record customer contacts and improve quality.	Gross Restricted GF/GP	$1,012,000 1,012,000 $0	$1,012,000 1,012,000 $0	$1,012,000 1,012,000 $0	$1,012,000 1,012,000 $0
*2. Eliminate One-Time Appropriations* Eliminates one-time appropriation of $370,000 as a result of completion of the Social Security Number Privacy project and $210,000 used to purchase inter-active voice equipment at the customer call center.	Gross Restricted GF/GP	($580,000) (580,000) $0	($580,000) (580,000) $0	($580,000) (580,000) $0	($580,000) (580,000) $0
3. *State* *Building* *Authority Rent* Reflects adjustments made for projected rent payments, consistent with anticipated rent payments for previously constructed projects. Additional reduction of $6.4 million taken to reflect refunding and most recent estimates of rental payments for previously constructed projects.	Gross Restricted GF/GP	($4,575,000) (3,575,000) ($1,000,000)	($4,575,000) (3,575,000) ($1,000,000)	($4,575,000) (3,575,000) ($1,000,000)	($10,975,000) (3,575,000) ($7,400,000)
*4. Building Occupancy Adjustments* Includes an additional $335,300 to cover costs of increased rent payments for leased facilities and $71,300 to cover operational costs of new Joint Operations Center (building in downtown Lansing).	Gross IDG GF/GP	$406,600 406,600 $0	$406,600 406,600 $0	$406,600 406,600 $0	$406,600 406,600 $0
*5. Professional Development Funds* Includes additional funding to cover costs of agreements reached and approved by the Civil Service Commission on professional development funds. These appropriations are funded through charges to other state departments based on their proportionate share of employees in each of the groups.	Gross IDG GF/GP	$154,000 154,000 $0	$154,000 154,000 $0	$154,000 154,000 $0	$154,000 154,000 $0
*6. Administrative Reductions* Reduces amount of funding available for administrative expenses by $952,200. Savings are anticipated to be generated through staffing reductions, fund source shifts, real estate optimization, changes to building security, and changes to the ID Mail Delivery Program. Additional GF/GP reductions ($245,000) taken from Administrative Services, Business Support Services, Office of State Employer, Office of Children's Ombudsman to meet target.	FTEs Gross IDG Restricted GF/GP	(4.5) ($952,200) (439,900) (12,500) ($499,800)	(4.5) ($952,200) (439,900) (12,500) ($499,800)	(0.0) $395,700 1,600 12,500 $381,600	(4.5) ($1,197,200) (439,900) (12,500) ($744,800)
*7. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.	Gross IDG Restricted GF/GP	$3,381,900 1,187,100 703,300 $1,239,100	$3,381,900 1,187,100 703,300 $1,239,100	$3,381,900 1,187,100 703,300 $1,239,100	$3,381,900 1,187,100 703,300 $1,239,100
*8. Department of Human Services – Internal Audit* Reflects transfer of Internal Audit line item from Department of Human Services to Department of Management and Budget as a result of Executive Order 2007-31.	FTEs Gross Federal GF/GP	0.0 $0 0 $0	0.0 $0 0 $0	11.9 $1,400,000 844,500 $555,500	0.0 $0 0 $0
*9. GF/GP Reduction* Reflects Senate reductions in the following lines: Executive Operations ($41,900); Administrative Services ($51,800); Budget and Financial Management ($835,100); Office of the State Employer ($35,900); Business Support Services ($167,700); and the Information Technology ($9,500).	Gross GF/GP	$0 $0	($1,141,900) ($1,141,900)	$0 $0	$0 $0
*10. Budgetary Savings* Reflects a new appropriation unit for budgetary savings to be taken at the discretion of the department as recommended by the Senate.	Gross GF/GP	$0 $0	($620,500) ($620,500)	$0 $0	$0 $0
*11. Fund Shift Adjustment* Adjusts fund sourcing in order to replace existing GF/GP with additional MAIN user charges to meet target.	Gross Restricted GF/GP	$0 0 $0	$0 0 $0	$0 0 $0	($313,900) 280,000 ($593,900)
*12. Additional GF/GP Adjustments* Includes partial restoration of the Governor's original reductions to Unclassified Positions ($14,700) and Budget and Financial Management ($200,000) line items to meet target.	Gross GF/GP	$0 $0	$0 $0	$0 $0	$214,700 $214,700
CIVIL SERVICE *13. Administrative Reductions* Reduces amount of funding available for administrative expenses by $361,100. Savings are anticipated to be generated through administrative efficiencies. Additional GF/GP reduction ($163,800) made to Executive Direction line to meet target.	Gross Restricted GF/GP	($361,100) (10,500) ($350,600)	($361,100) (10,500) ($350,600)	$0 0 $0	($524,900) (10,500) ($514,400)
*14. Economic Adjustments* Includes additional funding for salaries and wages, insurances, and retirement; reduces funding for worker's compensation and building occupancy charges.	Gross IDG Restricted GF/GP	$818,300 87,800 539,500 $191,000	$818,300 87,800 539,500 $191,000	$818,300 87,800 539,500 $191,000	$818,300 87,800 539,500 $191,000
*15. GF/GP Reduction* Reflects Senate reductions to Civil Service Operations ($94,100) and Information Technology Projects and Services line items ($9,500).	Gross GF/GP	$0 $0	($103,600) ($103,600)	$0 $0	$0 $0
*16. Budgetary Savings* Reflects a new appropriation unit for budgetary savings to be taken at the discretion of the department as recommended by the Senate.	Gross GF/GP	$0 $0	($95,500) ($95,500)	$0 $0	$0 $0

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

Conference

Change

DEPARTMENT OF MANAGEMENT AND BUDGET

1. Office of Retirement Services – IT Adjustments

Includes additional funding for the following program enhancements: $300,000 to provide the system the ability to add a new spouse for an existing retiree as a pension beneficiary; $150,000 to hire a full-time security officer for retirement-related information technology systems; $150,000 to implement the electronic deposit of retirement payments to the state from public schools; and $412,000 for software to record customer contacts and improve quality.

Gross

Restricted

GF/GP

$1,012,000

1,012,000

$1,012,000

1,012,000

$1,012,000

1,012,000

$1,012,000

1,012,000

2. Eliminate One-Time Appropriations

Eliminates one-time appropriation of $370,000 as a result of completion of the Social Security Number Privacy project and $210,000 used to purchase inter-active voice equipment at the customer call center.

Gross

Restricted

GF/GP

($580,000)

(580,000)

($580,000)

(580,000)

($580,000)

(580,000)

($580,000)

(580,000)

3. State Building Authority Rent

Reflects adjustments made for projected rent payments, consistent with anticipated rent payments for previously constructed projects. Additional reduction of $6.4 million taken to reflect refunding and most recent estimates of rental payments for previously constructed projects.

Gross

Restricted

GF/GP

($4,575,000)

(3,575,000)

($1,000,000)

($4,575,000)

(3,575,000)

($1,000,000)

($4,575,000)

(3,575,000)

($1,000,000)

($10,975,000)

(3,575,000)

($7,400,000)

4. Building Occupancy Adjustments

Includes an additional $335,300 to cover costs of increased rent payments for leased facilities and $71,300 to cover operational costs of new Joint Operations Center (building in downtown Lansing).

Gross

IDG

GF/GP

$406,600

406,600

$406,600

406,600

$406,600

406,600

$406,600

406,600

5. Professional Development Funds

Includes additional funding to cover costs of agreements reached and approved by the Civil Service Commission on professional development funds. These appropriations are funded through charges to other state departments based on their proportionate share of employees in each of the groups.

Gross

IDG

GF/GP

$154,000

154,000

$154,000

154,000

$154,000

154,000

$154,000

154,000

6. Administrative Reductions

Reduces amount of funding available for administrative expenses by $952,200. Savings are anticipated to be generated through staffing reductions, fund source shifts, real estate optimization, changes to building security, and changes to the ID Mail Delivery Program. Additional GF/GP reductions ($245,000) taken from Administrative Services, Business Support Services, Office of State Employer, Office of Children's Ombudsman to meet target.

FTEs

Gross

IDG

Restricted

GF/GP

(4.5)

($952,200)

(439,900)

(12,500)

($499,800)

(4.5)

($952,200)

(439,900)

(12,500)

($499,800)

(0.0)

$395,700

1,600

12,500

$381,600

(4.5)

($1,197,200)

(439,900)

(12,500)

($744,800)

7. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.

Gross

IDG

Restricted

GF/GP

$3,381,900

1,187,100

703,300

$1,239,100

$3,381,900

1,187,100

703,300

$1,239,100

$3,381,900

1,187,100

703,300

$1,239,100

$3,381,900

1,187,100

703,300

$1,239,100

8. Department of Human Services – Internal Audit

Reflects transfer of Internal Audit line item from Department of Human Services to Department of Management and Budget as a result of Executive Order 2007-31.

FTEs

Gross

Federal

GF/GP

0.0

11.9

$1,400,000

844,500

$555,500

0.0

9. GF/GP Reduction

Reflects Senate reductions in the following lines: Executive Operations ($41,900); Administrative Services ($51,800); Budget and Financial Management ($835,100); Office of the State Employer ($35,900); Business Support Services ($167,700); and the Information Technology ($9,500).

Gross

GF/GP

($1,141,900)

($1,141,900)

10. Budgetary Savings

Reflects a new appropriation unit for budgetary savings to be taken at the discretion of the department as recommended by the Senate.

Gross

GF/GP

($620,500)

($620,500)

11. Fund Shift Adjustment

Adjusts fund sourcing in order to replace existing GF/GP with additional MAIN user charges to meet target.

Gross

Restricted

GF/GP

($313,900)

280,000

($593,900)

12. Additional GF/GP Adjustments

Includes partial restoration of the Governor's original reductions to Unclassified Positions ($14,700) and Budget and Financial Management ($200,000) line items to meet target.

Gross

GF/GP

$214,700

$214,700

CIVIL SERVICE

13. Administrative Reductions

Reduces amount of funding available for administrative expenses by $361,100. Savings are anticipated to be generated through administrative efficiencies. Additional GF/GP reduction ($163,800) made to Executive Direction line to meet target.

Gross

Restricted

GF/GP

($361,100)

(10,500)

($350,600)

($361,100)

(10,500)

($350,600)

($524,900)

(10,500)

($514,400)

14. Economic Adjustments

Includes additional funding for salaries and wages, insurances, and retirement; reduces funding for worker's compensation and building occupancy charges.

Gross

IDG

Restricted

GF/GP

$818,300

87,800

539,500

$191,000

$818,300

87,800

539,500

$191,000

$818,300

87,800

539,500

$191,000

$818,300

87,800

539,500

$191,000

15. GF/GP Reduction

Reflects Senate reductions to Civil Service Operations ($94,100) and Information Technology Projects and Services line items ($9,500).

Gross

GF/GP

($103,600)

($103,600)

16. Budgetary Savings

Reflects a new appropriation unit for budgetary savings to be taken at the discretion of the department as recommended by the Senate.

Gross

GF/GP

($95,500)

($95,500)

Major Boilerplate Changes From FY 2006-07
GENERAL SECTIONS OF BOILERPLATE *Sec. 205. Hiring Freeze –* RETAINED Executive, House and Conference Committee retain current year language by requiring the creation of a position or filling of any vacant position by any method necessary to provide for the basic daily living requirements of residents of the state institution or facility. Senate modifies current year language.
*Sec. 208. Internet Reporting Requirements –* MODIFIED Executive and Senate retain current year language requiring departments to use the Internet to fulfill reporting requirements and authorizes transmission of reports via email or on an Internet site. House and Conference Committee modify current year language.
*Sec. 220. Contributions to Political Organizations –* DELETED Executive, House and Conference Committee delete language that prohibits funding from being used to establish, operate, or administer a payroll deduction plan that enables classified state employees to make contributions to either a political organization or committee. Senate includes current year language.
*Sec. 221. Reporting Requirement on Specific Policy Change –* NEW Executive and House do not include new language requiring departments to report no later than April 1, 2008 on each specific policy change made to implement enacted legislation. Senate and Conference Committee include the language.
*Sec. 222. Budgetary Savings Appropriation Authorization –* NOT INCLUDED Executive, House and Conference Committee do not include new language that requires appropriation authorization adjustments due to negative appropriations for budgetary savings shall be made only after the approval of transfers by the legislature. Senate includes new language.
*Sec. 225. Implementation of Continuous Improvement Efficiency Mechanisms* – NEW House and Conference Committee include language which requires each department receiving appropriation in part 1 implement continuous improvement efficiency mechanisms in its departmental programs that identify changes made in those programs to increase efficiency and reduce expenditures. Executive and Senate do not include language.
*Sec. 226.* *Restriction on Fund Use for Hiring –* NEW Senate and Conference Committee include new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general;prohibition does not apply to legal services for bonding activities and for those activities that the attorney general authorizes. Executive andHouse do not include language.
DEPARTMENT OF MANAGEMENT AND BUDGET *Sec. 701. Contingency Funding* – NEW Executive, House and Conference Committee include language which appropriates federal, state restricted, and local contingency funding that can be expended only upon legislative transfer to a specific line item. Senate does not include language.
*Sec. 715.(3) Motor Vehicle Fleet Assignment* – RETAINED Executive and House delete language that expresses legislative intent that DMB have the authority to determine appropriateness of vehicle assignment. Senate and Conference Committee include current year language.
*Sec. 724a. Existing* *2-1-1* *Capacities –* NEW Executive and House do not include new language which requires DMB to assist DIT in determining how existing 2-1-1 capacities will be utilized by each department with community resource information and referral service. Senate and Conference Committee include new language.
*Sec. 724b. Appraisal and Market Analysis –* NOT INCLUDED House includes new language which requires DMB conduct an independent appraisal and market analysis of the Calumet State Police Post for the purpose of potential acquisition of the property by the state. Executive, Senate and Conference Committee do not include language.
*Sec. 724d. Study Procurement Procedures* – NOT INCLUDED House includes language that requires DMB contract with a private company to conduct a study of ways to streamline the Department's procurement procedures for durable goods and services. Executive, Senate and Conference Committee do not include language.
*Sec. 724b. Personal Property and Equipment Report* – NEW Conference Committee includes new language that requires DMB to issue a report with date of acquisition, original equipment cost, estimate of useful life and amount of encumbrances or liens by December 1, 2007 for all personal property and equipment of any nature including but not limited to furniture, computers, communication systems, vehicles, vessels, aircraft, office equipment, technology equipment, and energy systems owned by the State of Michigan and/or state department, agency, or authority.
CIVIL SERVICE *Sec. 741. Contingency Funding* – NEW Executive, House and Conference Committee include language which appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. Senate does not include the language.

Major Boilerplate Changes From FY 2006-07

GENERAL SECTIONS OF BOILERPLATE

Sec. 205. Hiring Freeze – RETAINED

Executive, House and Conference Committee retain current year language by requiring the creation of a position or filling of any vacant position by any method necessary to provide for the basic daily living requirements of residents of the state institution or facility. Senate modifies current year language.

Sec. 208. Internet Reporting Requirements – MODIFIED

Executive and Senate retain current year language requiring departments to use the Internet to fulfill reporting requirements and authorizes transmission of reports via email or on an Internet site. House and Conference Committee modify current year language.

Sec. 220. Contributions to Political Organizations – DELETED

Executive, House and Conference Committee delete language that prohibits funding from being used to establish, operate, or administer a payroll deduction plan that enables classified state employees to make contributions to either a political organization or committee. Senate includes current year language.

Sec. 221. Reporting Requirement on Specific Policy Change – NEW

Executive and House do not include new language requiring departments to report no later than April 1, 2008 on each specific policy change made to implement enacted legislation. Senate and Conference Committee include the language.

Sec. 222. Budgetary Savings Appropriation Authorization – NOT INCLUDED

Executive, House and Conference Committee do not include new language that requires appropriation authorization adjustments due to negative appropriations for budgetary savings shall be made only after the approval of transfers by the legislature. Senate includes new language.

Sec. 225. Implementation of Continuous Improvement Efficiency Mechanisms – NEW

House and Conference Committee include language which requires each department receiving appropriation in part 1 implement continuous improvement efficiency mechanisms in its departmental programs that identify changes made in those programs to increase efficiency and reduce expenditures. Executive and Senate do not include language.

Sec. 226. Restriction on Fund Use for Hiring – NEW

Senate and Conference Committee include new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general;prohibition does not apply to legal services for bonding activities and for those activities that the attorney general authorizes. Executive andHouse do not include language.

DEPARTMENT OF MANAGEMENT AND BUDGET

Sec. 701. Contingency Funding – NEW

Executive, House and Conference Committee include language which appropriates federal, state restricted, and local contingency funding that can be expended only upon legislative transfer to a specific line item. Senate does not include language.

Sec. 715.(3) Motor Vehicle Fleet Assignment – RETAINED

Executive and House delete language that expresses legislative intent that DMB have the authority to determine appropriateness of vehicle assignment. Senate and Conference Committee include current year language.

Sec. 724a. Existing 2-1-1 Capacities – NEW

Executive and House do not include new language which requires DMB to assist DIT in determining how existing 2-1-1 capacities will be utilized by each department with community resource information and referral service. Senate and Conference Committee include new language.

Sec. 724b. Appraisal and Market Analysis – NOT INCLUDED

House includes new language which requires DMB conduct an independent appraisal and market analysis of the Calumet State Police Post for the purpose of potential acquisition of the property by the state. Executive, Senate and Conference Committee do not include language.

Sec. 724d. Study Procurement Procedures – NOT INCLUDED

House includes language that requires DMB contract with a private company to conduct a study of ways to streamline the Department's procurement procedures for durable goods and services. Executive, Senate and Conference Committee do not include language.

Sec. 724b. Personal Property and Equipment Report – NEW

Conference Committee includes new language that requires DMB to issue a report with date of acquisition, original equipment cost, estimate of useful life and amount of encumbrances or liens by December 1, 2007 for all personal property and equipment of any nature including but not limited to furniture, computers, communication systems, vehicles, vessels, aircraft, office equipment, technology equipment, and energy systems owned by the State of Michigan and/or state department, agency, or authority.

CIVIL SERVICE

Sec. 741. Contingency Funding – NEW

Executive, House and Conference Committee include language which appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. Senate does not include the language.

STATE

Summary: First Conference Report

FY 2007-08 SB 229

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY 2006-07 YTD*
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$197,783,000	$208,221,200	$204,529,300	$208,221,200	$207,681,400	*$9,898,400*	5.0
IDG/IDT	20,000,000	20,000,000	20,000,000	20,000,000	20,000,000	0	0.0
Federal	3,192,100	1,911,200	1,561,200	1,911,200	1,911,200	(1,280,900)	(40.1)
Local	0	0	0	0	0	$0	0.0
Private	100	100	100	100	100	$0	0.0
Restricted	157,832,200	156,972,900	156,972,900	156,972,900	156,972,900	(859,300)	(0.5)
GF/GP	$17,758,600	$29,337,000	$25,995,100	$29,337,000	$28,797,200	$11,038,600	(62.2)
FTEs	1,859.8	1,859.8	1,859.8	1,859.8	1,859.8

Overview

The Department of State administers programs in eight areas: Driver Licensing and Vehicle Registration, which includes titling and registering vehicles; Elections and Campaign Finance Administration, which includes training local election officials and monitoring campaign finance; Regulatory and Consumer Protection, which includes inspecting and licensing automotive repair facilities; Traffic Safety which includes driver testing; Office of the Great Seal; Assigned Claims Facility; Uniform Commercial Code; and Executive Direction and Central Support.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
*1. Transportation Administration Collection Fund* Reduces state restricted funding authorized in the TACF and includes additional GF/GP to cover the anticipated shortfall in collection of TACF revenue.	Gross Restricted GF/GP	$0 (6,000,000) $6,000,000	$0 (6,000,000) $6,000,000	$0 (6,000,000) $6,000,000	$0 (6,000,000) $6,000,000
*2. Increased Funding for Fees to Local Units* Includes additional funding to reimburse counties for their costs associated with training deputy registrars and processing voter registration applications.	Gross GF/GP	$40,000 $40,000	$40,000 $40,000	$40,000 $40,000	$40,000 $40,000
*3. Fund Source Adjustments* Adjusts the following state restricted fund sources in order to more accurately reflect the amount of revenues actually collected: Auto Repair Facilities Fees, Vehicle Theft Prevention Fees, Parking Ticket Court Fines, Mobile Home Commission Fees, and Child Support Clearance Fees.	Gross Restricted GF/GP	($950,000) (950,000) $0	($950,000) (950,000) $0	($950,000) (950,000) $0	($950,000) (950,000) $0
*4. Administrative Reductions* Reduces amount of funding available for administrative expenses by $2.6 million. Savings are anticipated to be generated through administrative efficiencies.	Gross Federal Restricted GF/GP	($2,583,000) (1,489,600) (134,500) ($958,900)	($2,583,000) (1,489,600) (134,500) ($958,900)	($2,583,000) (1,489,600) (134,500) ($958,900)	($2,583,000) (1,489,600) (134,500) ($958,900)
*5. GF/GP Reductions* The Senate and Conference Committee provide for further GF/GP reductions for Executive Direction Operations; Department Services Operations; Regulatory Services Operations; Branch Operations; Central Operations; and Worker’s Compensation.	Gross GF/GP	$0 $0	($757,900) ($757,900)	$0 $0	($539,800) ($539,800)
*6. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.	Gross GF/GP	$0 $0	($2,584,000) ($2,584,000)	$0 $0	$0 $0
*7. Help* *America* *Vote Act* The Executive (revised August 16, 2007) and the House Committee include $350,000 in federal funds to implement the federal Help America Vote Act.	Gross Federal	$350,000 350,000	$0 $0	$350,000 350,000	$350,000 $350,000
*8. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, and building occupancy charges; reduces funding for worker's compensation.	Gross Federal Restricted GF/GP	$6,615,400 101,200 1,346,300 $5,167,900	$6,615,400 101,200 1,346,300 $5,167,900	$6,615,400 101,200 1,346,300 $5,167,900	$6,615,400 101,200 1,346,300 $5,167,900

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

Conference

Change

1. Transportation Administration Collection Fund

Reduces state restricted funding authorized in the TACF and includes additional GF/GP to cover the anticipated shortfall in collection of TACF revenue.

Gross

Restricted

GF/GP

(6,000,000)

$6,000,000

(6,000,000)

$6,000,000

(6,000,000)

$6,000,000

(6,000,000)

$6,000,000

2. Increased Funding for Fees to Local Units

Includes additional funding to reimburse counties for their costs associated with training deputy registrars and processing voter registration applications.

Gross

GF/GP

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

3. Fund Source Adjustments

Adjusts the following state restricted fund sources in order to more accurately reflect the amount of revenues actually collected: Auto Repair Facilities Fees, Vehicle Theft Prevention Fees, Parking Ticket Court Fines, Mobile Home Commission Fees, and Child Support Clearance Fees.

Gross

Restricted

GF/GP

($950,000)

(950,000)

($950,000)

(950,000)

($950,000)

(950,000)

($950,000)

(950,000)

4. Administrative Reductions

Reduces amount of funding available for administrative expenses by $2.6 million. Savings are anticipated to be generated through administrative efficiencies.

Gross

Federal

Restricted

GF/GP

($2,583,000)

(1,489,600)

(134,500)

($958,900)

($2,583,000)

(1,489,600)

(134,500)

($958,900)

($2,583,000)

(1,489,600)

(134,500)

($958,900)

($2,583,000)

(1,489,600)

(134,500)

($958,900)

5. GF/GP Reductions

The Senate and Conference Committee provide for further GF/GP reductions for Executive Direction Operations; Department Services Operations; Regulatory Services Operations; Branch Operations; Central Operations; and Worker’s Compensation.

Gross

GF/GP

($757,900)

($757,900)

($539,800)

($539,800)

6. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.

Gross

GF/GP

($2,584,000)

($2,584,000)

7. Help America Vote Act

The Executive (revised August 16, 2007) and the House Committee include $350,000 in federal funds to implement the federal Help America Vote Act.

Gross

Federal

$350,000

350,000

$350,000

350,000

$350,000

$350,000

8. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, and building occupancy charges; reduces funding for worker's compensation.

Gross

Federal

Restricted

GF/GP

$6,615,400

101,200

1,346,300

$5,167,900

$6,615,400

101,200

1,346,300

$5,167,900

$6,615,400

101,200

1,346,300

$5,167,900

$6,615,400

101,200

1,346,300

$5,167,900

Major Boilerplate Changes From FY 2006-07
*Sec. 801. Contingency Funding* – NEW Includes language that appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. The Executive and House included this section; the Senate did not.
*Sec. 815. Branch Office Closings or Consolidations* – MODIFIED The Conference Committee modifies language concerning notification of branch office closings, consolidations, or relocations to be given to the appropriations committees and to legislators who represent the affected areas. Branch office closures and consolidations would require180 days advance notice, and relocations would require 60 days advance notice. The House and Senate included the original language with required 60-day advance notice for closures, consolidations, and relocations; the Executive did not include this section.
*Sec. 815a. Report on Branch Office Transactions* – RETAINED Retains language that requires the Department to report on the number of branch office transactions completed online. The House and Senate included this section; the Executive did not.
*Sec. 818.* *Motorcycle Safety Education Program* – RETAINED Retains language that requires funds appropriated for Motorcycle Safety Education Grants and Administration to be used for program operation; requires funding to be derived from license endorsements and registration and testing fees; authorizes funds for grants to help subsidize safety training courses for individuals interested in operating motorcycles; and authorizes funds to be used for administrative costs. The House and Senate included this section; the Executive did not.
*Sec. 819. Business Application Modernization Project* – RETAINED Retains language that requires funds appropriated for the Business Application Modernization project to be used for development, implementation, and maintenance of the business application modernization project; designates unexpended funds as a work project account and authorizes unexpended funding to be carried forward. The House and Senate included this section; the Executive did not.
*Sec. 821. Keweenaw* *County* *Branch* *Office –* DELETED Deletes a section that requires the Department to complete a cost/benefit analysis on feasibility of locating the Keweenaw County Secretary of State branch office with Keweenaw County Department of Human Services office and specifies information that is to be provided. The Executive, House, and Senate deleted this section.
*Sec. 821. Gifts and Donations –* NEW Includes language that permits the Department to accept non-monetary gifts, donations, or contributions from private or public sources to support the Department's licensing, regulatory, or safety functions. The Senate included this language; the Executive and House did not.
*Sec. 824.* *Buena Vista* *Township* *Branch Office –* NEW Adds a section that requires the department to maintain a full service branch office in the Buena Vista Township. This language was included in the Senate and House. The Executive did not include this section.
*Sec. 825.* *Milan* *Branch Office –* NEW Adds a section that requires the department to maintain a full service branch office in the City of Milan. This language was included in the Senate and House. The Executive did not include this section.
*Sec. 826. Branch Office Locations –* NEW Adds a section that requires the department to the same number of branch offices in each municipality that existed on August 1, 2007, which was added by the House. The Senate included similar language requiring a branch office for each location that existed on August 1, 2007. The Executive did not include any language.
*Sec. 828. Branch Office Locations in Urban Areas –* NEW Adds a section that provides guidelines to the department in locating branch offices, encouraging offices to be located in downtown areas, town centers, central business districts, and brownfield sites rather than greenfields and open space sites. The House included this section; the Executive and Senate did not.

Major Boilerplate Changes From FY 2006-07

Sec. 801. Contingency Funding – NEW

Includes language that appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. The Executive and House included this section; the Senate did not.

Sec. 815. Branch Office Closings or Consolidations – MODIFIED

The Conference Committee modifies language concerning notification of branch office closings, consolidations, or relocations to be given to the appropriations committees and to legislators who represent the affected areas. Branch office closures and consolidations would require180 days advance notice, and relocations would require 60 days advance notice. The House and Senate included the original language with required 60-day advance notice for closures, consolidations, and relocations; the Executive did not include this section.

Sec. 815a. Report on Branch Office Transactions – RETAINED

Retains language that requires the Department to report on the number of branch office transactions completed online. The House and Senate included this section; the Executive did not.

Sec. 818. Motorcycle Safety Education Program – RETAINED

Retains language that requires funds appropriated for Motorcycle Safety Education Grants and Administration to be used for program operation; requires funding to be derived from license endorsements and registration and testing fees; authorizes funds for grants to help subsidize safety training courses for individuals interested in operating motorcycles; and authorizes funds to be used for administrative costs. The House and Senate included this section; the Executive did not.

Sec. 819. Business Application Modernization Project – RETAINED

Retains language that requires funds appropriated for the Business Application Modernization project to be used for development, implementation, and maintenance of the business application modernization project; designates unexpended funds as a work project account and authorizes unexpended funding to be carried forward. The House and Senate included this section; the Executive did not.

Sec. 821. Keweenaw County Branch Office – DELETED

Deletes a section that requires the Department to complete a cost/benefit analysis on feasibility of locating the Keweenaw County Secretary of State branch office with Keweenaw County Department of Human Services office and specifies information that is to be provided. The Executive, House, and Senate deleted this section.

Sec. 821. Gifts and Donations – NEW

Includes language that permits the Department to accept non-monetary gifts, donations, or contributions from private or public sources to support the Department's licensing, regulatory, or safety functions. The Senate included this language; the Executive and House did not.

Sec. 824. Buena Vista Township Branch Office – NEW

Adds a section that requires the department to maintain a full service branch office in the Buena Vista Township. This language was included in the Senate and House. The Executive did not include this section.

Sec. 825. Milan Branch Office – NEW

Adds a section that requires the department to maintain a full service branch office in the City of Milan. This language was included in the Senate and House. The Executive did not include this section.

Sec. 826. Branch Office Locations – NEW

Adds a section that requires the department to the same number of branch offices in each municipality that existed on August 1, 2007, which was added by the House. The Senate included similar language requiring a branch office for each location that existed on August 1, 2007. The Executive did not include any language.

Sec. 828. Branch Office Locations in Urban Areas – NEW

Adds a section that provides guidelines to the department in locating branch offices, encouraging offices to be located in downtown areas, town centers, central business districts, and brownfield sites rather than greenfields and open space sites. The House included this section; the Executive and Senate did not.

TREASURY

Summary: First Conference Report

FY 2007-08 SB 229

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *Conference from FY2006-07 YTD***
	YTD	Executive	Senate	House	Conference	*Amount*	%
Gross	$1,684,848,300	$1,814,142,000	$1,721,070,200	$1,814,522,400	$1,759,155,000	$74,306,700	4.4
IDG/IDT	13,466,200	$11,631,400	$11,631,400	$11,632,400	11,631,400	(1,834,800)	(13.6)
Federal	91,107,800	91,836,400	91,836,400	91,837,800	91,836,400	728,600	0.8
Local	1,045,700	1,100,700	1,100,700	1,100,700	1,100,700	55,000	5.3
Private	700,000	712,800	712,800	712,800	712,800	12,800	1.8
Restricted	1,477,571,200	1,510,740,100	1,439,250,100	1,508,758,200	1,464,563,100	(13,008,100)	(0.9)
GF/GP	100,957,400	198,120,600	176,538,800	200,480,500	189,310,600	88,353,200	87.5
FTEs	1,858.5	1,858.5	1,858.5	1863.5	1905.5	42.00	2.25

Note: FY 2006-07 figures include the results of supplementals and Executive Order (EO) actions through October 4, 2007, and also include the Michigan Strategic Fund, which was a separate article in the FY 2007 appropriations act (2006 PA 345, Article 13). The Senate places the MSF into its own separate bill (SB 239), although the Senate figures above include both Treasury and the MSF.

Overview

The Department of Treasury is the chief fiscal agency of the state and the primary source of advice to the Governor on tax and fiscal policy issues. The Department’s mission is to collect state taxes, to invest, control, and disburse state monies, and to protect the state’s credit rating and that of its cities. The Department manages one of the nation’s largest pension funds, administers revenue sharing, and administers the student financial aid programs. It also investigates fraudulent financial activity, provides assistance on all property tax-related issues, advises issuers of municipal obligations. The Bureau of State Lottery and the Michigan Gaming Control Board are autonomous agencies housed within the Department of Treasury. The Michigan Strategic Fund is an autonomous agency transferred from the Department of Labor and Economic Growth with the enactment of 2005 PA 225. The fund and programs of the MSF are administered by the Michigan Economic Development Corporation (MEDC). The MEDC also administers the 21^st Century Jobs Fund, which is intended to diversify Michigan's economy in four competitive edge technologies: alternative energy, life sciences, advanced manufacturing, and homeland security.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change	Conference Change
TREASURY OPERATIONS 1. Treasury Operations Conference Committee recommendation for Treasury operations (excluding revenue sharing, debt service, and the MSF) is: $399.8 million Gross; $11.6 million IDG; $36.4 million Federal; $1.1 million Local; $287.3 million Restricted; and $63.4 million GF/GP.	FTEs Gross IDG Federal Local Restricted GF/GP	0.0 $12,853,400 (2,196,800) 499,400 34,500 16,725,100 ($2,208,800)	0.0 ($38,759,500) (2,196,800) 499,400 34,500 (32,570,400) ($4,491,700)	5.0 ($34,876,800) (2.195.800) 500,800 34,500 ($32,474,900) (741,400)	47.0 $10,941,800 (2,196,800) 499,400 34,500 5,695,100 6,909,600
*2. Administrative Reductions* The Executive recommended a number of administrative reductions totaling $1.6 million Gross for the revenue enhancement program ($1.2 million, $500,000 of which is consistent with the program's 3-year funding plan); mail operations ($100,000); collections ($100,000); merit award administration ($100,000); lottery information technology ($37,000); casino gaming information technology ($2,300); and Treasury information technology ($40,200). The Senate and Conference Committee concurred with this reduction; the House Committee did not.	FTEs Gross IDG Federal Restricted GF/GP	0.0 ($1,579,500) (1,000) (1,400) (166,300) (1,410,800)	(3.0) ($1,579,500) (1,000) (1,400) (166,300) (1,410,800)	0.0 $0 0 0 0 0 $0	(3.0) ($1,579,500) (1,000) (1,400) (166,300) (1,410,800)
*3. Local Gov’t Programs GF/GP Reduction* In addition to other baseline adjustments, the Senate reduced funding for supervision of property tax ($314,000) and local finance ($63,800). The Executive and House Committee do not include these reductions. The Conference Committee reduces the supervision line by $200,000.	Gross GF/GP	$0 $0	($377,800) ($377,800)	$0 $0	($200,000) ($200,000)
*4. Tax and Economic Policy GF/GP Reduction* In addition to other baseline adjustments, the Senate reduced funding for the tax and economic policy line by $66,900.	Gross GF/GP	$0 $0	($66,900) ($66,900)	$0 $0	$0 $0
*5. Banking and Management GF/GP Reduction* In addition to other baseline adjustments, the Senate reduced funding for program management ($26,200), HR and purchasing ($118,000), and receipts processing ($23,800). The Conference Committee reduces HR and purchasing ($50,000); program management ($100,000), and mail operations ($50,000).	Gross GF/GP	$0 $0	($168,000) ($168,000)	$0 $0	($200,000) ($200,000)
*6. Financial Programs GF/GP Reduction* In addition to other baseline adjustments, the Senate reduces funding for common cash and debt management ($13,800) and student financial assistance programs ($73,500).	Gross GF/GP	$0 $0	($87,300) ($87,300)	$0 $0	$0 $0
*7. Information Technology GF/GP Reduction* In addition to other baseline adjustments, the Senate reduces funding for information technology by $212,000.	Gross GF/GP	$0 $0	($212,000) ($212,000)	$0 $0	$0 $0
*8. Senior Citizen Co-op Housing Tax Exemption* The Senate reduces funding for the senior citizen cooperative housing tax exemption payments to local units by $877,100 GF/GP. The Executive and House maintain FY 2007 enacted funding levels. The Conference Committee reduces funding by $1.3 million from the FY 2007 enacted level, which represents an increase of $85,900 from FY 2007 YTD funding levels.	Gross GF/GP	$0 $0	($877,100) ($877,100)	$0 $0	($1,301,600) ($1,301,600)
*9. Convention Facility Development Fund* The Senate and House Committee reduce funding by $35.0 million to reflect the FY 2007 budget balancing agreement to use $35 million in convention facility funds collected in FY 2007 that would otherwise be distributed to counties in FY 2008. The Conference Committee does not include this reduction because of the enactment of 2007 PA 72 (SB 774).	Gross Restricted	$0 0	($35,000,000) (35,000,000)	($35,000,000) (35,000,000)	$0 $0
*10.* *Tuscola* *County* *– Convention Facility Reimbursement* The House Committee adds $56,600 for a grant to Tuscola County equal to one-half the amount it would have received in FY 2008 in convention facility funds were it not for the FY 2007 budget balancing agreement. The Senate does not provide a line item, but provides a boilerplate appropriation for the full amount. The Conference Committee does not include this line item because of the enactment of 2007 PA 72 (SB 774).	Gross GF/GP	$0 $0	$0 $0	$56,600 $56,600	$0 $0
*11. Local Public Safety Grants* The Executive creates a new grant program for local law enforcement and fire protection services using increased liquor license fees. The Senate does not include this program. The House Committee includes a $100 placeholder. The Conference Committee does not include this program.	Gross Restricted	$14,381,000 14,381,000	$0 0	$100 100	$0 $0
*12. Qualified Agricultural Loan Payments* The House Committee adds a $100 (GF/GP) placeholder for the qualified agricultural loan program whereby the department subsidies zero-interest loans to farmers suffering significant crop damage. Current loans are to be repaid by October 1, 2007. The Executive, Senate, and Conference Committee do not include this section.	Gross GF/GP	$0 $0	$0 $0	$100 $100	$0 $0
*12. Economic Adjustments* Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and increases in retirement and self-insured worker's compensation, and reflects decrease in rent and building occupancy costs.	Gross IDG Federal Local Restricted GF/GP	$7,116,300 380,200 500,800 34,500 5,245,100 $955,700	$7,116,300 380,200 500,800 34,500 5,245,100 $955,700	$7,116,300 380,200 500,800 34,500 5,245,100 $955,700	$7,116,300 380,200 500,800 34,500 5,245,100 $955,700
*13. Implement Tax Law Changes* The Conference Committee adds $8.4 million GF/GP and 28.0 FTEs for implementation of the Michigan Business Tax; $120,000 GF/GP for implementation of the income tax rate increase; and $400,000 GF/GP and 2.0 FTEs for the tax on services.	FTEs Gross GF/GP	0.0 $0 $0	0.0 $0 $0	0.0 $0 $0	30.0 $8,920,000 $8,920,000
*14. Blackstone Settlement Payment* The Conference Committee adds $2.0 million GF/GP pursuant to the settlement agreement with Blackstone Minerals Co. stemming from litigation involving oil and gas interests on land foreclosed because of delinquent property taxes. (A total of $7 million is to be paid over the next 4 fiscal years.)	Gross GF/GP	$0 $0	$0 $0	$0 $0	$2,000,000 $2,000,000
*15. Secondary Collections* Adds $1.8 million for the Collections Division and $1.5 million for information technology using in delinquent tax collection revenue increased costs related to the implementation of the secondary collections contract (see BP Section 930a).	FTEs Gross GF/GP	0.0 $0 $0	0.0 $0 $0	0.0 $0 $0	17.0 $3,300,000 $3,300,000
*15. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.	Gross GF/GP	$0 $0	($477,900) ($477,900)	$0 $0	$0 $0
REVENUE SHARING *16. Constitutional Revenue Sharing* The Conference Committee increases constitutional revenue sharing by $8.0 million from actual FY 2007 payments. (From the enacted appropriation of $698.9 million, this is a reduction of $25.0 million.) The amount is derived from FY 2008 revenue estimates from the May 2008 Consensus Revenue Estimating Conference. The Executive and Senate were based on the January 2008 estimates. The House appropriation equaled the FY 2007 enacted appropriation.	Gross Restricted	$19,490,237 19,490,237	$19,490,237 19,490,237	$32,948,237 $32,948,237	$7,975,237 $7,975,237
*17. Statutory Revenue Sharing* The Conference Committee decreases statutory revenue sharing by $6.2 million from actual FY 2007 payments. (From the enacted appropriation of $407.5 million, this is a reduction of $8.8 million.) The amount is derived from FY 2008 revenue estimates from the May 2008 Consensus Revenue Estimating Conference. The Executive and Senate were based on the January 2008 estimates. The House appropriation equaled the FY 2007 enacted appropriation.	Gross Restricted	($4,030,578) (4,030,578)	($4,030,578) (4,030,578)	$2,569,422 $2,569,422	($6,202,578) $6,202,578
*18. Special Census Revenue Sharing* The House restored funding for special census revenue sharing payments eliminated in FY 2007 by EO 2007-3. The Executive, Senate, and Conference Committee do not include this funding.	Gross GF/GP	($892,400) ($892,400)	($892,400) ($892,400)	$0 $0	($892,400) ($892,400)
*19. Local Government Collaborative Efforts* The Executive provide grants to cities, villages, and townships that share services, merge, or consolidate activities with other governmental entities. The House Committee doubles the amount recommended by the Executive. The Senate and Conference Committee do not include this funding.	Gross Restricted	$27,160,000 27,160,000	$0 0	$54,320,000 54,320,000	$0 $0
*20.* *County* *Revenue Sharing* *Payments* Provides revenue sharing funding to Tuscola County, the first county to exhaust its Revenue Sharing Reserve Fund.	Gross GF/GP	$113,600 $113,600	$113,600 $113,600	$113,600 $113,600	$113,600 $113,600
DEBT SERVICE *21. Debt Service* Adds $13.1 million for Clean Michigan Initiative debt service; $1.6 million for Quality of Life bonds debt service; $5.2 million for Great Lakes Water Quality bond debt service; and reduces Water Pollution Control bond debt service by $71,800.	Gross Restricted GF/GP	$19,828,200 0 $19,828,200	$19,828,200 0 $19,828,200	$19,828,200 0 $19,828,200	$19,828,200 0 $19,828,200
Michigan Strategic Fund (MSF) *20.* *Michigan* *Strategic Fund* The Conference Committee appropriates $166.4 million – Gross; $80,000 – IDG; $55.4 million – Federal; $712,800 – Private; $80.7 million – Restricted; and $29.4 million – GF/GP.	FTEs Gross IDG Federal Private Restricted GF/GP	0.0 $98,171,100 1,400 7,743,700 12,800 75,000,200 $15,413,000	0.0 $83,872,200 1,400 7,743,700 12,800 80,000,200 ($3,885,900)	0.0 $98,171,300 1,400 7,743,700 12,800 75,000,200 $15,413,100	0.0 $85,942,700 1,400 7,743,700 12,800 80,700,200 ($2,515,400)
*21. 21^st Century Jobs Fund* Uses $75.0 million in remaining tobacco settlement revenue to continue 21^st Century Jobs Fund programs to diversify Michigan's economy.	Gross Restricted	$75,000,000 75,000,000	$75,000,000 75,000,000	$75,000,000 75,000,000	$75,000,000 75,000,000
*20.* *Michigan* *Promotion Program* The Executive and House Committee add $10.0 million to expand advertising of Michigan as a tourist destination, and promote Michigan as a business location. The Senate adds $1 million and alters funding sources. The Conference Committee adds $5.7 million from awards from the competitive edge technology grant and loan program that are not taken by awardees.	Gross Restricted GF/GP	$10,000,000 0 $10,000,000	$1,000,000 3,621,500 ($2,621,500)	$10,000,000 0 $10,000,000	$5,700,000 5,700,000 0
*21. Community Development Block Grants* Recognizes $8.0 million in additional federal funds.	Gross Federal	$8,000,000 8,000,000	$8,000,000 8,000,000	$8,000,000 8,000,000	$8,000,000 8,000,000
*22. Alternative Energy Initiative* The Executive and House provided funding for a competitive grant program for gas stations adding ethanol pumps. The Senate leaves a $100 placeholder. The Conference Committee does not include this program.	Gross GF/GP	$7,000,000 $7,000,000	$100 $100	$7,000,000 $7,000,000	$0 $0
*23. Economic Development Job Training Grants* Reduces funding for economic development job training grants.	Gross GF/GP	($1,600,500) ($1,600,500)	($1,600,500) ($1,600,500)	($1,600,500) ($1,600,500)	($2,235,700) ($2,235,700)
*24. Small Business Innovation Research (SBIR) and Small Business Technical Transfer (STTR)* The Senate added a new line item for the SBIR/STTR matching grant program to spur R&D among small businesses. The Conference Committee moves this funding to a boilerplate allocation of $1.4 million from the $75.0 million appropriation from the 21^st Century Jobs Trust Fund.	Gross Restricted	$0 0	$1,378,500 1,378,500	$0 0	Boilerplate Allocation
*25. Aerospace Certification Grants* The Senate adds a new line item for aerospace certification grants to reimburse companies for eligible costs incurred in achieving aerospace manufacturing certification. The Conference Committee moves this funding to a boilerplate allocation within the Economic Development Job Training (EDJT) program, and permits the MEDC to use work project funds related to the Defense Contract Coordination Center.	Gross GF/GP	$0 0	$500,000 $500,000	$0 0	Boilerplate Allocation
*26. Entrepreneurial Training and Mentoring* The Senate added a $100 place holder for the entrepreneurial training and mentoring program between the MSF, Michigan Works!, and the Department of Labor and Economic growth for students in secondary and post-secondary education. The House Committee concurred with this change. The Conference Committee does not include this program.	Gross GF/GP	$0 0	$100 $100	$100 100	$0 $0
*27. Business Incubator Program* The Conference Committee adds a $100 placeholder to fund a business incubator program to provide grants and loans to competitive edge technology businesses located in certain economically depressed areas. If funds become available at a later date, funding for this program will increase by $4 million.	Gross GF/GP	$0 $0	$0 $0	$100 $100	$100 $100
*28. Ethanol Plants* The Conference Committee includes two $100 placeholders for grants to the Berrien County Brownfield Redevelopment Authority and McBain Township (Missaukee County) for projects involving the construction of ethanol plants in the two localities.	Gross GF/GP	$0 $0	$0 $0	Boilerplate Allocation	$200 $200
*29. Cultural Institutions and Bioscience Research Earmarks.* The Conference Committee includes $100 placeholder earmarks for the Detroit Zoo, Detroit Institute of Art, the Detroit Historical Center, and a bioscience research project at Michigan State University.	Gross GF/GP	$0 $0	$0 $0	$0 $0	$400 $400
*30. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.	Gross GF/GP	$0 0	($177,500) ($177,500)	$0 0	$0 0
*31. MSF Economics* Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and decreases in retirement and self-insured worker's compensation.	Gross IDG Federal Private Restricted GF/GP	$413,000 1,400 43,700 12,800 200 $354,900	$413,000 1,400 43,700 12,800 200 $354,900	$413,000 1,400 43,700 12,800 200 $354,900	$413,000 1,400 43,700 12,800 200 $354,900

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

Conference

Change

TREASURY OPERATIONS

1. Treasury Operations

Conference Committee recommendation for Treasury operations (excluding revenue sharing, debt service, and the MSF) is: $399.8 million Gross; $11.6 million IDG; $36.4 million Federal; $1.1 million Local; $287.3 million Restricted; and $63.4 million GF/GP.

FTEs

Gross

IDG

Federal

Local

Restricted

GF/GP

0.0

$12,853,400

(2,196,800)

499,400

34,500

16,725,100

($2,208,800)

0.0

($38,759,500)

(2,196,800)

499,400

34,500

(32,570,400)

($4,491,700)

5.0

($34,876,800)

(2.195.800)

500,800

34,500

($32,474,900)

(741,400)

47.0

$10,941,800

(2,196,800)

499,400

34,500

5,695,100

6,909,600

2. Administrative Reductions

The Executive recommended a number of administrative reductions totaling $1.6 million Gross for the revenue enhancement program ($1.2 million, $500,000 of which is consistent with the program's 3-year funding plan); mail operations ($100,000); collections ($100,000); merit award administration ($100,000); lottery information technology ($37,000); casino gaming information technology ($2,300); and Treasury information technology ($40,200). The Senate and Conference Committee concurred with this reduction; the House Committee did not.

FTEs

Gross

IDG

Federal

Restricted

GF/GP

0.0

($1,579,500)

(1,000)

(1,400)

(166,300)

(1,410,800)

(3.0)

($1,579,500)

(1,000)

(1,400)

(166,300)

(1,410,800)

0.0

(3.0)

($1,579,500)

(1,000)

(1,400)

(166,300)

(1,410,800)

3. Local Gov’t Programs GF/GP Reduction

In addition to other baseline adjustments, the Senate reduced funding for supervision of property tax ($314,000) and local finance ($63,800). The Executive and House Committee do not include these reductions. The Conference Committee reduces the supervision line by $200,000.

Gross

GF/GP

($377,800)

($377,800)

($200,000)

($200,000)

4. Tax and Economic Policy GF/GP Reduction

In addition to other baseline adjustments, the Senate reduced funding for the tax and economic policy line by $66,900.

Gross

GF/GP

($66,900)

($66,900)

5. Banking and Management GF/GP Reduction

In addition to other baseline adjustments, the Senate reduced funding for program management ($26,200), HR and purchasing ($118,000), and receipts processing ($23,800). The Conference Committee reduces HR and purchasing ($50,000); program management ($100,000), and mail operations ($50,000).

Gross

GF/GP

($168,000)

($168,000)

($200,000)

($200,000)

6. Financial Programs GF/GP Reduction

In addition to other baseline adjustments, the Senate reduces funding for common cash and debt management ($13,800) and student financial assistance programs ($73,500).

Gross

GF/GP

($87,300)

($87,300)

7. Information Technology GF/GP Reduction

In addition to other baseline adjustments, the Senate reduces funding for information technology by $212,000.

Gross

GF/GP

($212,000)

($212,000)

8. Senior Citizen Co-op Housing Tax Exemption

The Senate reduces funding for the senior citizen cooperative housing tax exemption payments to local units by $877,100 GF/GP. The Executive and House maintain FY 2007 enacted funding levels. The Conference Committee reduces funding by $1.3 million from the FY 2007 enacted level, which represents an increase of $85,900 from FY 2007 YTD funding levels.

Gross

GF/GP

($877,100)

($877,100)

($1,301,600)

($1,301,600)

9. Convention Facility Development Fund

The Senate and House Committee reduce funding by $35.0 million to reflect the FY 2007 budget balancing agreement to use $35 million in convention facility funds collected in FY 2007 that would otherwise be distributed to counties in FY 2008. The Conference Committee does not include this reduction because of the enactment of 2007 PA 72 (SB 774).

Gross

Restricted

($35,000,000)

(35,000,000)

($35,000,000)

(35,000,000)

10. Tuscola County – Convention Facility Reimbursement

The House Committee adds $56,600 for a grant to Tuscola County equal to one-half the amount it would have received in FY 2008 in convention facility funds were it not for the FY 2007 budget balancing agreement. The Senate does not provide a line item, but provides a boilerplate appropriation for the full amount. The Conference Committee does not include this line item because of the enactment of 2007 PA 72 (SB 774).

Gross

GF/GP

$56,600

$56,600

11. Local Public Safety Grants

The Executive creates a new grant program for local law enforcement and fire protection services using increased liquor license fees. The Senate does not include this program. The House Committee includes a $100 placeholder. The Conference Committee does not include this program.

Gross

Restricted

$14,381,000

14,381,000

$100

100

12. Qualified Agricultural Loan Payments

The House Committee adds a $100 (GF/GP) placeholder for the qualified agricultural loan program whereby the department subsidies zero-interest loans to farmers suffering significant crop damage. Current loans are to be repaid by October 1, 2007. The Executive, Senate, and Conference Committee do not include this section.

Gross

GF/GP

$100

$100

12. Economic Adjustments

Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and increases in retirement and self-insured worker's compensation, and reflects decrease in rent and building occupancy costs.

Gross

IDG

Federal

Local

Restricted

GF/GP

$7,116,300

380,200

500,800

34,500

5,245,100

$955,700

$7,116,300

380,200

500,800

34,500

5,245,100

$955,700

$7,116,300

380,200

500,800

34,500

5,245,100

$955,700

$7,116,300

380,200

500,800

34,500

5,245,100

$955,700

13. Implement Tax Law Changes

The Conference Committee adds $8.4 million GF/GP and 28.0 FTEs for implementation of the Michigan Business Tax; $120,000 GF/GP for implementation of the income tax rate increase; and $400,000 GF/GP and 2.0 FTEs for the tax on services.

FTEs

Gross

GF/GP

0.0

30.0

$8,920,000

$8,920,000

14. Blackstone Settlement Payment

The Conference Committee adds $2.0 million GF/GP pursuant to the settlement agreement with Blackstone Minerals Co. stemming from litigation involving oil and gas interests on land foreclosed because of delinquent property taxes. (A total of $7 million is to be paid over the next 4 fiscal years.)

Gross

GF/GP

$2,000,000

$2,000,000

15. Secondary Collections

Adds $1.8 million for the Collections Division and $1.5 million for information technology using in delinquent tax collection revenue increased costs related to the implementation of the secondary collections contract (see BP Section 930a).

FTEs

Gross

GF/GP

0.0

17.0

$3,300,000

$3,300,000

15. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.

Gross

GF/GP

($477,900)

($477,900)

REVENUE SHARING

16. Constitutional Revenue Sharing

The Conference Committee increases constitutional revenue sharing by $8.0 million from actual FY 2007 payments. (From the enacted appropriation of $698.9 million, this is a reduction of $25.0 million.) The amount is derived from FY 2008 revenue estimates from the May 2008 Consensus Revenue Estimating Conference. The Executive and Senate were based on the January 2008 estimates. The House appropriation equaled the FY 2007 enacted appropriation.

Gross

Restricted

$19,490,237

19,490,237

$19,490,237

19,490,237

$32,948,237

$32,948,237

$7,975,237

$7,975,237

17. Statutory Revenue Sharing

The Conference Committee decreases statutory revenue sharing by $6.2 million from actual FY 2007 payments. (From the enacted appropriation of $407.5 million, this is a reduction of $8.8 million.) The amount is derived from FY 2008 revenue estimates from the May 2008 Consensus Revenue Estimating Conference. The Executive and Senate were based on the January 2008 estimates. The House appropriation equaled the FY 2007 enacted appropriation.

Gross

Restricted

($4,030,578)

(4,030,578)

($4,030,578)

(4,030,578)

$2,569,422

$2,569,422

($6,202,578)

$6,202,578

18. Special Census Revenue Sharing

The House restored funding for special census revenue sharing payments eliminated in FY 2007 by EO 2007-3. The Executive, Senate, and Conference Committee do not include this funding.

Gross

GF/GP

($892,400)

($892,400)

($892,400)

($892,400)

($892,400)

($892,400)

19. Local Government Collaborative Efforts

The Executive provide grants to cities, villages, and townships that share services, merge, or consolidate activities with other governmental entities. The House Committee doubles the amount recommended by the Executive. The Senate and Conference Committee do not include this funding.

Gross

Restricted

$27,160,000

27,160,000

$54,320,000

54,320,000

20. County Revenue Sharing Payments

Provides revenue sharing funding to Tuscola County, the first county to exhaust its Revenue Sharing Reserve Fund.

Gross

GF/GP

$113,600

$113,600

$113,600

$113,600

$113,600

$113,600

$113,600

$113,600

DEBT SERVICE

21. Debt Service

Adds $13.1 million for Clean Michigan Initiative debt service; $1.6 million for Quality of Life bonds debt service; $5.2 million for Great Lakes Water Quality bond debt service; and reduces Water Pollution Control bond debt service by $71,800.

Gross

Restricted

GF/GP

$19,828,200

$19,828,200

$19,828,200

$19,828,200

$19,828,200

$19,828,200

$19,828,200

$19,828,200

Michigan Strategic Fund (MSF)

20. Michigan Strategic Fund

The Conference Committee appropriates $166.4 million – Gross; $80,000 – IDG; $55.4 million – Federal; $712,800 – Private; $80.7 million – Restricted; and $29.4 million – GF/GP.

FTEs

Gross

IDG

Federal

Private

Restricted

GF/GP

0.0

$98,171,100

1,400

7,743,700

12,800

75,000,200

$15,413,000

0.0

$83,872,200

1,400

7,743,700

12,800

80,000,200

($3,885,900)

0.0

$98,171,300

1,400

7,743,700

12,800

75,000,200

$15,413,100

0.0

$85,942,700

1,400

7,743,700

12,800

80,700,200

($2,515,400)

21. 21^st Century Jobs Fund

Uses $75.0 million in remaining tobacco settlement revenue to continue 21^st Century Jobs Fund programs to diversify Michigan's economy.

Gross

Restricted

$75,000,000

75,000,000

$75,000,000

75,000,000

$75,000,000

75,000,000

$75,000,000

75,000,000

20. Michigan Promotion Program

The Executive and House Committee add $10.0 million to expand advertising of Michigan as a tourist destination, and promote Michigan as a business location. The Senate adds $1 million and alters funding sources. The Conference Committee adds $5.7 million from awards from the competitive edge technology grant and loan program that are not taken by awardees.

Gross

Restricted

GF/GP

$10,000,000

$10,000,000

$1,000,000

3,621,500

($2,621,500)

$10,000,000

$10,000,000

$5,700,000

5,700,000

21. Community Development Block Grants

Recognizes $8.0 million in additional federal funds.

Gross

Federal

$8,000,000

8,000,000

$8,000,000

8,000,000

$8,000,000

8,000,000

$8,000,000

8,000,000

22. Alternative Energy Initiative

The Executive and House provided funding for a competitive grant program for gas stations adding ethanol pumps. The Senate leaves a $100 placeholder. The Conference Committee does not include this program.

Gross

GF/GP

$7,000,000

$7,000,000

$100

$100

$7,000,000

$7,000,000

23. Economic Development Job Training Grants

Reduces funding for economic development job training grants.

Gross

GF/GP

($1,600,500)

($1,600,500)

($1,600,500)

($1,600,500)

($1,600,500)

($1,600,500)

($2,235,700)

($2,235,700)

24. Small Business Innovation Research (SBIR) and Small Business Technical Transfer (STTR)

The Senate added a new line item for the SBIR/STTR matching grant program to spur R&D among small businesses. The Conference Committee moves this funding to a boilerplate allocation of $1.4 million from the $75.0 million appropriation from the 21^st Century Jobs Trust Fund.

Gross

Restricted

$1,378,500

1,378,500

Boilerplate

Allocation

25. Aerospace Certification Grants

The Senate adds a new line item for aerospace certification grants to reimburse companies for eligible costs incurred in achieving aerospace manufacturing certification. The Conference Committee moves this funding to a boilerplate allocation within the Economic Development Job Training (EDJT) program, and permits the MEDC to use work project funds related to the Defense Contract Coordination Center.

Gross

GF/GP

$500,000

$500,000

Boilerplate

Allocation

26. Entrepreneurial Training and Mentoring

The Senate added a $100 place holder for the entrepreneurial training and mentoring program between the MSF, Michigan Works!, and the Department of Labor and Economic growth for students in secondary and post-secondary education. The House Committee concurred with this change. The Conference Committee does not include this program.

Gross

GF/GP

$100

$100

$100

100

27. Business Incubator Program

The Conference Committee adds a $100 placeholder to fund a business incubator program to provide grants and loans to competitive edge technology businesses located in certain economically depressed areas. If funds become available at a later date, funding for this program will increase by $4 million.

Gross

GF/GP

$100

$100

$100

$100

28. Ethanol Plants

The Conference Committee includes two $100 placeholders for grants to the Berrien County Brownfield Redevelopment Authority and McBain Township (Missaukee County) for projects involving the construction of ethanol plants in the two localities.

Gross

GF/GP

Boilerplate

Allocation

$200

$200

29. Cultural Institutions and Bioscience Research Earmarks.

The Conference Committee includes $100 placeholder earmarks for the Detroit Zoo, Detroit Institute of Art, the Detroit Historical Center, and a bioscience research project at Michigan State University.

Gross

GF/GP

$400

$400

30. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.

Gross

GF/GP

($177,500)

($177,500)

31. MSF Economics

Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and decreases in retirement and self-insured worker's compensation.

Gross

IDG

Federal

Private

Restricted

GF/GP

$413,000

1,400

43,700

12,800

200

$354,900

$413,000

1,400

43,700

12,800

200

$354,900

$413,000

1,400

43,700

12,800

200

$354,900

$413,000

1,400

43,700

12,800

200

$354,900

Major Boilerplate Changes From FY 2006-07
DEPARTMENT OF TREASURY *Sec. 901. Contingency Funds –* NEW Includes new language appropriating up to $1.0 million for federal contingency funds, up to $10.0 million for state restricted contingency funds, up to $200,000 for local contingency funds, and $40,000 for federal contingency funds. The Executive and House included this section; the Senate did not.
*Sec. 919(2). National Conference of Commissioners on* *Uniform* *State* *Laws Dues –* NEW Includes language specifying that $51,000 in escheats revenue is to be expended for paying annual dues to the National Conference of Commissioners on Uniform State Laws (NCCUSL). The Senate included this language; the Executive and House did not.
*Sec. 930a. Secondary Collections Activities –* NEW Includes new language requiring the Department to select a private collection agency for secondary collection activities in compliance with the accounts receivable collection system contract. The Senate included this section; the Executive and House did not.
*Sec. 941. Standardized Audit Schedules –* RETAINED Retains a provision that appropriates up to $570,000 from standardized audit schedules recovered delinquent tax collection revenue for the support of standardized audit schedule project expenses related to business tax audits concerning sales tax, use tax, withholding, single business tax, and motor fuel tax obligations. The Senate retained this section; the Executive and House did not.
*Sec. 941. Local Public Safety Grants –* NOT INCLUDED The Conference Committee did not include language providing that the local public safety grants are to be distributed to cities, village, and townships for local law enforcement and fire protection services with funding based on Department of Corrections prisoner intake data on the number of prisoners residing in a local unit to prior incarceration. The minimum grant award must be $100,000, with funding contingent on an increase in liquor license fees. The Executive and House included this section; the Senate did not.
*Sec. 943. Social Security Numbers –* RETAINED Retains a provision that prohibits the department from including complete social security numbers in Form 1099-G mailings. The House and Senate included this section; the Executive did not.
*Sec. 945. Review of Local Assessment Practices –* RETAINED Retains a provision that permits the Department to review local unit assessment administration, practices, procedures, and records (known as the 14-point review) in at least one assessment jurisdiction per county. The House and Senate retained this section; the Executive did not.
*Sec. 946. State Tax Commission –* RETAINED Retains a provision that permits State Tax Commission and staff of Assessment and Certification Division to meet with statewide assessment organizations on a quarterly basis to coordinate assessment and training activities; permits recertification and training activities to be conducted at regional locations that maximize participation by local officials. The House and Senate retained this section; the Executive did not.
*Sec. 948.* Electronic Filing – RETAIN Retains a provision that requires a report to the Legislature on the number of tax returns filed electronically. The House and Senate retained this section; the Executive did not.
*Sec. 949. Income Tax Check-Offs Initiative* – DELETED Deletes a provision that requires the department to develop a plan for individual income tax form check-offs to be implemented in tax year 2006. The Executive, House, and Senate deleted this section.
**Sec. 949b. Tobacco Stamp Technology RFP –NEW Includes language that permits the Department to conduct a competitive bid for current and new tobacco stamp technology and permitting tobacco wholesalers to claim a deduction for costs related to new technology in their monthly reimbursements under the Tobacco Products Tax Act. The House added language requiring (rather than permitting) the RFP. The Executive and Senate** did not include this language.
**Sec. 950. Revenue Sharing –REVISED The Conference Committee** modifies language concerning the distribution of revenue sharing funds to freeze the total payment to a local unit at the 2007 level. For those units that received only a constitutional payment, their 2008 payment would be whatever is required under the constitution, based on sales tax collections. For those units that received both a constitutional and statutory payment in 2007 their 2008 payment, in total, would equal the 2007 payment.
**Sec. 957. Local Government Collaborative Efforts– NOT INCLUDED The Conference Committee did not include language that requires that payments to local units for collaborative efforts shall be distributed to units that achieve greater efficiencies in delivering public services using the formulas provided in the Glenn Steil State Revenue Sharing Act. The Executive and House (modified slightly) included this section; the Senate** did not.
Lottery **Sec. 962. Use of Athletes in Advertising –DELETED** Deletes a provision that prohibits the Bureau of State Lottery from associating professional or amateur sports figures (except for NASCAR drivers) with the lottery or its products; requires report to the Legislature on cost of obtaining use of NASCAR drivers, administrative costs, and net School Aid Fund revenue.
*Sec. 963.* *DHS* *Bridge* **Card Use Notification –RETAINED Retains a provision that requires Bureau of State Lottery to notify retailers that DHS bridge cards cannot be used to purchase lottery tickets. The House and Senate retained this section; the Executive** did not.
MICHIGAN STRATEGIC FUND *Sec. 1001. Contingency Funds –* NEW Includes new language appropriating up to $10.0 million for federal contingency funds, up to $1.0 million for state restricted funds, and $0.7 million for private funds. The Executive and House included this section; the Senate did not.
*Sec. 1002. Economic Development Job Training (EDJT) Grants* – MODIFIED Earmarks $4.5 million for community colleges rather than the 75% earmark in current law. The Executive renamed the grants as the “Upper Hand Training Grants” and specifies grants are to be primarily used by businesses in life sciences, advanced automotive manufacturing and materials technology; alternative energy; and other high technology businesses. The House concurred with the Executive changes, except that it retained the current name (EDJT). The Senate and Conference Committee concurred with the earmark to community colleges, but did not concur with other changes recommended by the Executive.
**Sec. 1002(16). Aerospace Manufacturing Certification EDJT Grants –NEW The Conference Committee allocates $500,000 from the funds available for EDJT grants for helping businesses obtain certification in aerospace manufacturing. Half the funds are to be used for grants of up to $10,000 and the other half is made available to the Michigan Aerospace Manufacturing Association to assist businesses in obtaining certification. The grant program may be funded using work project funds from the Defense Contract Coordination Center (DC3). The Senate included similar language; the Executive and House** did not include this section.
**Sec. 1005. Copyrighted Slogans and Images –MODIFIED Permits TravelMichigan to receive and expend private revenue related to the use of the copyrighted slogans and images of "The Upper Hand" and "Pure Michigan". The Executive and House included this language; the Senate** only included references to "Pure Michigan."
**Sec. 1006. Report of Grants Awarded by MSF and MEDC –MODIFIED Requires report on February 15 (rather than May 1 and November 1) on grants awarded by the Michigan Strategic Fund and Michigan Economic Development Corporation. The Executive and House included this language; the Senate** retained current language requiring two reports.
**Sec. 1015. Legislative Approval of MEDC Executive Members –DELETED Deletes a provision stating it is the intent of the Legislature that members of the MEDC Executive Committee be subject to the advice and consent of the Senate. The Executive and House** deleted this section; the Senate retained it.
**Sec. 1016. Audit of Jobs Created –RETAINED AND MODIFIED Retains a provision that requires the MEDC to develop and implement procedures to audit the number of jobs claims to be created by MEDC grant recipients, but deletes a requirement that the MEDC work with the Office of the Auditor General in auditing job claims. The Executive deleted this section. The Senate retains this section. The House** modified the section as it appears in the conference report.
**Sec. 1017. Report on MEDC Employee Salaries –RETAINED Retains a provision that requires the MEDC to report to the legislature and state budget office the name, job title, and job description of employees with a salary of at least $80,000. The House and Senate included this section; the Executive** deleted this section.
**Sec. 1018. Tourism Advertising Return on Investment– DELETED Deletes a provision that requires the MEDC to contract with a state research university inMichigan to conduct a scientific study on the return on investment of state tourism advertising expenditures. The Executive and Senate deleted this section; the House** did not.
*Sec. 1019.* *Michigan* **Economic Growth Authority MEGA Tax Credits for Leased Employees– DELETED Dlete a provision that requires that firms otherwise eligible for MEGA tax credits to qualify if employees hired for new jobs created are leased from a professional employer organization (PEO). The Executive and House deleted this section; the Senate** retained it.
*Sec. 1020. Federal Pass-Through Funds to Local Units –* NEW Adds new language appropriating federal pass-through funds to local units that do not require a state match; permits funds to be carried forward; requires report to appropriations subcommittees; legislative fiscal agencies; and state budget office within 10 business days of receiving such funds. The Executive and House included this section. The Senate added a reporting requirement to the appropriations subcommittees. The Conference Committee added the reporting requirement to the legislative fiscal agencies and the state budget office.
*Sec. 1021.* *Michigan* *Promotion Program –* NEW Adds language specifying that $5.7 million of the funds for theMichigan promotion program shall be used to accelerate to promote the state's tourism industry and business marketing activities. The MEDC would coordinate its activities with local tourism efforts where appropriate. The Senate included language requiring the coordination with local tourism efforts; the Executive and House did not.
*Sec. 1021(3).* *Michigan* *Promotion Program Additional Funding –* NEW Adds intent language that if additional funds become available during the fiscal year, funding for the promotion program would increase by $4.3 million.
*Sec. 1022. Business Incubator Program –* NEW Adds a provision concerning the line item appropriation in part 1 for the business incubator program. The program provide grants and loans designed to foster the creation of new jobs in competitive edge technologies, with preference given to grantees located in certain economically depressed areas (Benton Harbor, Detroit, Flint, and Lake County). The section also includes intent language that if additional funds become available during the fiscal year, funding for the program would increase by $4.0 million. The House included this section, although the number are qualifying distressed areas was greater. The Executive and Senate do not include this section or the line item.
**Sec. 1024. Small Business Innovation Research/Small Business Technology Transfer Research –NEW Adds language allocating $1.4 million from the 21^st Century Jobs Trust Fund to the Small Business Technology andDevelopmentCenters for the SBIR/STTR matching grant programs. The Senate included this section (with a different fund source); the Executive and House** did not.
*Sec. 1025. Jobs Report –* NEW Adds a section requiring the MEDC to only report the actual direct number of jobs and the projected number of indirect jobs to be created as a result of any financial or tax incentive package that is offered to a business and to include salaries and employer sponsored benefits in its publications for marketing and public information purposes. The Senate included this section; the Executive andHouse did not.
**Sec. 1027. 21^st Century Allocation for Biofuels –NEW Adds a section requiring the MSF board to amend its contract with Lakeshore Advantage for a project involving a former Pfizer plant in Holland to provide at least $3.0 million of the $3.4 million provided for the project is to be distributed prior to March 31, 2008, and to expand the allowable use of such funds to include all types of operating expenses. (This accelerates the payment, which was to be spread out over three years.) If the contract is not amended by February 28, 2008, an amount not exceeding $3.0 million from the appropriation for the 21^st Century Jobs Trust Fund programs would be allocated to Lakeshore Advantage in FY 2007-08 to bring the total payments to the organization to $3.0 million in FY 2007-08. The Senate included language allocating $2.0 million from the 21^st Century Jobs Trust Fund program to Lakeshore Advantage; the Executive** andHouse did not.
*Sec. 1029. Tax Incentives forMichigan* Workers –NEW The Conference Committee includes statements of legislative intent that tax and other economic development incentives be awarded to businesses that give preference toMichigan workers. The Senate included similar language that stated the incentives be given to businesses that hire 100% Michigan workers and that incentives be awarded on a sliding scale for businesses that hire Michigan and non-Michigan workers. The Senate included this language; the Executive** andHouse did not any language.
*Sec. 1030.* *Watervliet* *Township* *Ethanol Plant –* NEW The Conference Committee includes language specifying the $100 appropriation in part 1 for the Berrien County Brownfield Redevelopment Authority shall be expended for a brownfield redevelopment project inWatervlietTownship to construct an ethanol plant. The House included this section (with funding allocated from the alternative energy initiative); the Executive and Senate did not.
*Sec. 1031.* *McBain* *Township* *Infrastructure Improvements –* NEW The Conference Committee includes language specifying the $100 appropriation in part 1 forMcBain Township (Missaukee County) shall be used by the township for infrastructure improvements. The House included this section(with funding allocated from the alternative energy initiative); the Executive and Senate did not.
**Entrepreneurial Training and Mentoring Program –NOT INCLUDED The Conference Committee does not include a section specifying that the MSF shall partner with Michigan Works! agencies and the Department of Labor and Economic Growth to implement a training and mentoring program for students enrolled in secondary and post-secondary educational programs. The House and Senate included this section; the Executive** did not.
*21^st Century Allocation for Drug Makers –* NOT INCLUDED The Conference Committee does not include a section allocates $1.5 million from the 21^st century programs for a private research institute (Van Andel Institute) that has received a federal appropriation prior to 2005 for the creation of a manufacturing facility to produce drugs approved for use in clinical trials. The Senate included this section; the Executive andHouse did not.
**Intermodal Transportation Centers –NOT INCLUDED The Conference Committee does not include language allocating a $100 placeholder from the appropriation in part 1 for Intermodal Transportation Centers for a competitive grant and loan program for new hubs and improvements to existing hubs. The House included this section; the Executive and Senate** did not.

Major Boilerplate Changes From FY 2006-07

DEPARTMENT OF TREASURY

Sec. 901. Contingency Funds – NEW

Includes new language appropriating up to $1.0 million for federal contingency funds, up to $10.0 million for state restricted contingency funds, up to $200,000 for local contingency funds, and $40,000 for federal contingency funds. The Executive and House included this section; the Senate did not.

Sec. 919(2). National Conference of Commissioners on Uniform State Laws Dues – NEW

Includes language specifying that $51,000 in escheats revenue is to be expended for paying annual dues to the National Conference of Commissioners on Uniform State Laws (NCCUSL). The Senate included this language; the Executive and House did not.

Sec. 930a. Secondary Collections Activities – NEW

Includes new language requiring the Department to select a private collection agency for secondary collection activities in compliance with the accounts receivable collection system contract. The Senate included this section; the Executive and House did not.

Sec. 941. Standardized Audit Schedules – RETAINED

Retains a provision that appropriates up to $570,000 from standardized audit schedules recovered delinquent tax collection revenue for the support of standardized audit schedule project expenses related to business tax audits concerning sales tax, use tax, withholding, single business tax, and motor fuel tax obligations. The Senate retained this section; the Executive and House did not.

Sec. 941. Local Public Safety Grants – NOT INCLUDED

The Conference Committee did not include language providing that the local public safety grants are to be distributed to cities, village, and townships for local law enforcement and fire protection services with funding based on Department of Corrections prisoner intake data on the number of prisoners residing in a local unit to prior incarceration. The minimum grant award must be $100,000, with funding contingent on an increase in liquor license fees. The Executive and House included this section; the Senate did not.

Sec. 943. Social Security Numbers – RETAINED

Retains a provision that prohibits the department from including complete social security numbers in Form 1099-G mailings. The House and Senate included this section; the Executive did not.

Sec. 945. Review of Local Assessment Practices – RETAINED

Retains a provision that permits the Department to review local unit assessment administration, practices, procedures, and records (known as the 14-point review) in at least one assessment jurisdiction per county. The House and Senate retained this section; the Executive did not.

Sec. 946. State Tax Commission – RETAINED

Retains a provision that permits State Tax Commission and staff of Assessment and Certification Division to meet with statewide assessment organizations on a quarterly basis to coordinate assessment and training activities; permits recertification and training activities to be conducted at regional locations that maximize participation by local officials. The House and Senate retained this section; the Executive did not.

Sec. 948. Electronic Filing – RETAIN

Retains a provision that requires a report to the Legislature on the number of tax returns filed electronically. The House and Senate retained this section; the Executive did not.

Sec. 949. Income Tax Check-Offs Initiative – DELETED

Deletes a provision that requires the department to develop a plan for individual income tax form check-offs to be implemented in tax year 2006. The Executive, House, and Senate deleted this section.

Sec. 949b. Tobacco Stamp Technology RFP –NEW

Includes language that permits the Department to conduct a competitive bid for current and new tobacco stamp technology and permitting tobacco wholesalers to claim a deduction for costs related to new technology in their monthly reimbursements under the Tobacco Products Tax Act. The House added language requiring (rather than permitting) the RFP. The Executive and Senate did not include this language.

Sec. 950. Revenue Sharing –REVISED

The Conference Committee modifies language concerning the distribution of revenue sharing funds to freeze the total payment to a local unit at the 2007 level. For those units that received only a constitutional payment, their 2008 payment would be whatever is required under the constitution, based on sales tax collections. For those units that received both a constitutional and statutory payment in 2007 their 2008 payment, in total, would equal the 2007 payment.

Sec. 957. Local Government Collaborative Efforts– NOT INCLUDED

The Conference Committee did not include language that requires that payments to local units for collaborative efforts shall be distributed to units that achieve greater efficiencies in delivering public services using the formulas provided in the Glenn Steil State Revenue Sharing Act. The Executive and House (modified slightly) included this section; the Senate did not.

Lottery

Sec. 962. Use of Athletes in Advertising –DELETED

Deletes a provision that prohibits the Bureau of State Lottery from associating professional or amateur sports figures (except for NASCAR drivers) with the lottery or its products; requires report to the Legislature on cost of obtaining use of NASCAR drivers, administrative costs, and net School Aid Fund revenue.

Sec. 963. DHS Bridge Card Use Notification –RETAINED

Retains a provision that requires Bureau of State Lottery to notify retailers that DHS bridge cards cannot be used to purchase lottery tickets. The House and Senate retained this section; the Executive did not.

MICHIGAN STRATEGIC FUND

Sec. 1001. Contingency Funds – NEW

Includes new language appropriating up to $10.0 million for federal contingency funds, up to $1.0 million for state restricted funds, and $0.7 million for private funds. The Executive and House included this section; the Senate did not.

Sec. 1002. Economic Development Job Training (EDJT) Grants – MODIFIED

Earmarks $4.5 million for community colleges rather than the 75% earmark in current law. The Executive renamed the grants as the “Upper Hand Training Grants” and specifies grants are to be primarily used by businesses in life sciences, advanced automotive manufacturing and materials technology; alternative energy; and other high technology businesses. The House concurred with the Executive changes, except that it retained the current name (EDJT). The Senate and Conference Committee concurred with the earmark to community colleges, but did not concur with other changes recommended by the Executive.

Sec. 1002(16). Aerospace Manufacturing Certification EDJT Grants –NEW

The Conference Committee allocates $500,000 from the funds available for EDJT grants for helping businesses obtain certification in aerospace manufacturing. Half the funds are to be used for grants of up to $10,000 and the other half is made available to the Michigan Aerospace Manufacturing Association to assist businesses in obtaining certification. The grant program may be funded using work project funds from the Defense Contract Coordination Center (DC3). The Senate included similar language; the Executive and House did not include this section.

Sec. 1005. Copyrighted Slogans and Images –MODIFIED

Permits TravelMichigan to receive and expend private revenue related to the use of the copyrighted slogans and images of "The Upper Hand" and "Pure Michigan". The Executive and House included this language; the Senate only included references to "Pure Michigan."

Sec. 1006. Report of Grants Awarded by MSF and MEDC –MODIFIED

Requires report on February 15 (rather than May 1 and November 1) on grants awarded by the Michigan Strategic Fund and Michigan Economic Development Corporation. The Executive and House included this language; the Senate retained current language requiring two reports.

Sec. 1015. Legislative Approval of MEDC Executive Members –DELETED

Deletes a provision stating it is the intent of the Legislature that members of the MEDC Executive Committee be subject to the advice and consent of the Senate. The Executive and House deleted this section; the Senate retained it.

Sec. 1016. Audit of Jobs Created –RETAINED AND MODIFIED

Retains a provision that requires the MEDC to develop and implement procedures to audit the number of jobs claims to be created by MEDC grant recipients, but deletes a requirement that the MEDC work with the Office of the Auditor General in auditing job claims. The Executive deleted this section. The Senate retains this section. The House modified the section as it appears in the conference report.

Sec. 1017. Report on MEDC Employee Salaries –RETAINED

Retains a provision that requires the MEDC to report to the legislature and state budget office the name, job title, and job description of employees with a salary of at least $80,000. The House and Senate included this section; the Executive deleted this section.

Sec. 1018. Tourism Advertising Return on Investment– DELETED

Deletes a provision that requires the MEDC to contract with a state research university inMichigan to conduct a scientific study on the return on investment of state tourism advertising expenditures. The Executive and Senate deleted this section; the House did not.

Sec. 1019. Michigan Economic Growth Authority MEGA Tax Credits for Leased Employees– DELETED

Dlete a provision that requires that firms otherwise eligible for MEGA tax credits to qualify if employees hired for new jobs created are leased from a professional employer organization (PEO). The Executive and House deleted this section; the Senate retained it.

Sec. 1020. Federal Pass-Through Funds to Local Units – NEW

Adds new language appropriating federal pass-through funds to local units that do not require a state match; permits funds to be carried forward; requires report to appropriations subcommittees; legislative fiscal agencies; and state budget office within 10 business days of receiving such funds. The Executive and House included this section. The Senate added a reporting requirement to the appropriations subcommittees. The Conference Committee added the reporting requirement to the legislative fiscal agencies and the state budget office.

Sec. 1021. Michigan Promotion Program – NEW

Adds language specifying that $5.7 million of the funds for theMichigan promotion program shall be used to accelerate to promote the state's tourism industry and business marketing activities. The MEDC would coordinate its activities with local tourism efforts where appropriate. The Senate included language requiring the coordination with local tourism efforts; the Executive and House did not.

Sec. 1021(3). Michigan Promotion Program Additional Funding – NEW

Adds intent language that if additional funds become available during the fiscal year, funding for the promotion program would increase by $4.3 million.

Sec. 1022. Business Incubator Program – NEW

Adds a provision concerning the line item appropriation in part 1 for the business incubator program. The program provide grants and loans designed to foster the creation of new jobs in competitive edge technologies, with preference given to grantees located in certain economically depressed areas (Benton Harbor, Detroit, Flint, and Lake County). The section also includes intent language that if additional funds become available during the fiscal year, funding for the program would increase by $4.0 million. The House included this section, although the number are qualifying distressed areas was greater. The Executive and Senate do not include this section or the line item.

Sec. 1024. Small Business Innovation Research/Small Business Technology Transfer Research –NEW

Adds language allocating $1.4 million from the 21^st Century Jobs Trust Fund to the Small Business Technology andDevelopmentCenters for the SBIR/STTR matching grant programs. The Senate included this section (with a different fund source); the Executive and House did not.

Sec. 1025. Jobs Report – NEW

Adds a section requiring the MEDC to only report the actual direct number of jobs and the projected number of indirect jobs to be created as a result of any financial or tax incentive package that is offered to a business and to include salaries and employer sponsored benefits in its publications for marketing and public information purposes. The Senate included this section; the Executive andHouse did not.

Sec. 1027. 21^st Century Allocation for Biofuels –NEW

Adds a section requiring the MSF board to amend its contract with Lakeshore Advantage for a project involving a former Pfizer plant in Holland to provide at least $3.0 million of the $3.4 million provided for the project is to be distributed prior to March 31, 2008, and to expand the allowable use of such funds to include all types of operating expenses. (This accelerates the payment, which was to be spread out over three years.) If the contract is not amended by February 28, 2008, an amount not exceeding $3.0 million from the appropriation for the 21^st Century Jobs Trust Fund programs would be allocated to Lakeshore Advantage in FY 2007-08 to bring the total payments to the organization to $3.0 million in FY 2007-08. The Senate included language allocating $2.0 million from the 21^st Century Jobs Trust Fund program to Lakeshore Advantage; the Executive andHouse did not.

Sec. 1029. Tax Incentives forMichigan Workers –NEW

The Conference Committee includes statements of legislative intent that tax and other economic development incentives be awarded to businesses that give preference toMichigan workers. The Senate included similar language that stated the incentives be given to businesses that hire 100% Michigan workers and that incentives be awarded on a sliding scale for businesses that hire Michigan and non-Michigan workers. The Senate included this language; the Executive andHouse did not any language.

Sec. 1030. Watervliet Township Ethanol Plant – NEW

The Conference Committee includes language specifying the $100 appropriation in part 1 for the Berrien County Brownfield Redevelopment Authority shall be expended for a brownfield redevelopment project inWatervlietTownship to construct an ethanol plant. The House included this section (with funding allocated from the alternative energy initiative); the Executive and Senate did not.

Sec. 1031. McBain Township Infrastructure Improvements – NEW

The Conference Committee includes language specifying the $100 appropriation in part 1 forMcBain Township (Missaukee County) shall be used by the township for infrastructure improvements. The House included this section(with funding allocated from the alternative energy initiative); the Executive and Senate did not.

Entrepreneurial Training and Mentoring Program –NOT INCLUDED

The Conference Committee does not include a section specifying that the MSF shall partner with Michigan Works! agencies and the Department of Labor and Economic Growth to implement a training and mentoring program for students enrolled in secondary and post-secondary educational programs. The House and Senate included this section; the Executive did not.

21^st Century Allocation for Drug Makers – NOT INCLUDED

The Conference Committee does not include a section allocates $1.5 million from the 21^st century programs for a private research institute (Van Andel Institute) that has received a federal appropriation prior to 2005 for the creation of a manufacturing facility to produce drugs approved for use in clinical trials. The Senate included this section; the Executive andHouse did not.

Intermodal Transportation Centers –NOT INCLUDED

The Conference Committee does not include language allocating a $100 placeholder from the appropriation in part 1 for Intermodal Transportation Centers for a competitive grant and loan program for new hubs and improvements to existing hubs. The House included this section; the Executive and Senate did not.